Great Wall Motors, the mainland's largest homegrown manufacturer of sport utility vehicles, will kick off an initial public offering on the Shanghai Stock Exchange next week that is expected to raise 3.17 billion yuan (HK$3.87 billion).
The Hebei province-based vehicle maker will float 304.2 million A shares, or 10 per cent of its enlarged capital, allowing it to boost annual production capacity to 800,000 units.
The price consultations with institutional investors will begin on Wednesday.
Public investors can subscribe to the new shares on September 19. Based on projected proceeds of 3.17 billion yuan, Great Wall would offer the shares at 10.42 yuan each, representing a 12 per cent premium to the company's H shares that closed at HK$11.30 yesterday.
Great Wall began preparations for a Shanghai listing in 2004, after it raised HK$1.7 billion on the Hong Kong stock exchange. It received approval from the China Securities Regulatory Commission in early August to launch the A-share IPO.
Great Wall's A-share offering comes after the benchmark Shanghai Composite Index has lost 10 per cent this year.