Chongqing Lifan Holdings, the mainland's largest privately owned motorcycle maker, aims to launch an initial public offering in Hong Kong this year as it pursues its overseas expansion plan, according to its president.
Speaking on the sidelines of the Chinese People's Political Consultative Conference, Yin Mingshan said the company had picked a Hong Kong-based investment bank as the listing sponsor and planned to sell shares at a valuation of eight to 14 times earnings.
Lifan may be the first major mainland motorcycle maker to list in Hong Kong. Some carmakers, such as Dongfeng Motor and Great Wall Motor, which trade at 15 to 16 times earnings, are listed in the city.
'The purpose of our listing is not only to raise funds but also to introduce modern management systems into our operation,' Mr Yin said, adding Lifan had been in talks with potential investors - mainly overseas investment firms - on pre-IPO investment.
Lifan, a 15-year-old company, sold 2.54 million engines, 1.33 million motorcycles and 10,100 cars last year, when it recorded 34 per cent growth in turnover to 10.4 billion yuan, its website says. One-third of sales were exports and the rest went to the domestic market.
To get around overseas trade barriers such as import tariffs, the company has set up joint-venture motorcycle assembly plants in Indonesia, Vietnam and Thailand.