Chery reportedly mulls IPO in July

Shanghai, April 18 (Gasgoo.com) Chery Automobile Co, the largest independent automaker in China by market share, is preparing to go public in July this year, citing the QQ News.

Chery will go A-share alone instead of A+H IPO. The listing plan has already approved by the industry regulator -- the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), a senior Chery executive said.

Earlier in March Chery's joint venture project with U.S.-based Quantum LLC has been approved. Meanwhile, the company is holding similar discussions with Chrysler and Fiat.

The company also plans to boost its annual capacity to 1 million units by 2010, and its overall engine output is expected to hit 800,000 units after the completion of a third engine plant. Thus Chery is eager for IPO financing to ease the pressure on its cash flow.

Chery, which was established eleven years ago in eastern China's Anhui Province, is now one of the country’s few successful auto companies producing cars with Chinese brands.

It was China's fourth largest automaker by selling 381,000 vehicles in 2007, up 24.8 percent from one year earlier. Strong surge in sedan exports is a driving force behind Chery's impressive sales growth.