Mainland bus-maker Mudan Automobile is seeking foreign partners to stay competitive.
The Growth Enterprise Market candidate is in talks with several potential partners from Japan, Europe and the United States about possible technology-transfer deals.
Analysts said it was important Mudan Automobile engage in partnerships with foreign players as competitors were increasingly adopting more advanced technology. They said a foreign partnership would also put the company in a better position to compete with the flood of imports expected now China has lowered tariffs following its recently approved entry to the World Trade Organisation.
'[Mudan Automobile] badly needs such partnership to stay viable, although the company boasts to having developed its own technology and brand name,' said Kenny Tang, associate director of Tung Tai Securities.
In the first half of this year, Mudan had 9.94 per cent of the mainland's light-bus market, in which the major player - FAW-Jinbei Automotive - had about 50 per cent.
The company plans to sell 77 million new H shares at HK$1.13 each in its initial public offering and raise HK$55.6 million. The offer price is 6.65 times the earnings of last year on a pro-forma fully diluted basis and 5.14 times the earnings on the weighted average basis.
