New York-listed Brilliance China Automotive Holdings plans to raise HK$608.3 million from a dual primary listing in Hong Kong on October 22. The company will place 19.57 million shares to international investors and issue 2.17 million new shares to Hong Kong investors at HK$29.53 per share. Credit Lyonnais Securities (Asia) will act as lead underwriter. Brilliance China chairman Yang Rong said the Hong Kong listing could 'reflect the true value' of his company. The Liaoning-based minibus manufacturer and retailer became the first company with operations solely in the mainland to list on the New York Stock Exchange in October 1992. It is trading in New York at a price-earnings ratio of only 6.7 times despite impressive earnings growth in recent years. The placement and new issue shares represent about 20 per cent of the firm's enlarged capital base. About HK$396.2 million of the proceeds will be used to upgrade production equipment and expand annual capacity of deluxe and middle-priced minibuses to 100,000 units by next year from the present 40,000. Brilliance China turned out about 30,000 minibuses last year and expects to meet its target of more than 40,000 units this year. The company plans to use HK$194.2 million to acquire vehicle-components manufacturers and related businesses in the mainland. The rest of the proceeds will be used for working capital. The company's earnings per share grew to US$2.15 last year from 40 US cents in 1996. Net income reached 309.4 million yuan (about HK$288.7 million) last year, up 79.46 per cent from 1997. Sales were 3.22 billion yuan, up 32.71 per cent from the previous year. For the six months to June 30 this year, net income grew 116 per cent to 265.7 million yuan over the same period last year. Mr Yang said localisation of its production and material sourcing, and adoption of the advanced technology of its foreign partner would give his company an edge over foreign competition when the mainland opened its car market after being admitted to the World Trade Organisation. Established in 1992, Brilliance China holds a 51 per cent stake in Shenyang Jinbei Passenger Vehicle Manufacturing (Shenyang Automotive), a Sino-foreign joint venture set up in 1991. It also holds a 51 per cent share in vehicle window-moulding and stripping manufacturer Ningbo Yuming Machinery Industrial, and a 50 per cent interest in petrol-engine manufacturer Mianyang Xinchen Engine. Its wholly owned subsidiary Xing Yuan Dong Automotive Component centralises and consolidates the sourcing of vehicle components for Shenyang Automotive.