Geely Auto set to become first carmaker to list on Shanghai’s Star Market as it seeks to raise US$2.9 billion
- Hong Kong-listed Geely plans to use the proceeds in new technologies and vehicle models, as well as to finance mergers and acquisitions
- Geely is targeting full-year sales of about 1.32 million vehicles, down 3 per cent from 2019, helped by a second-half recovery in demand
The debut would represent the first for any carmaker on the bourse, a forum for hi-tech and innovative companies that started last year.
Hangzhou-based Geely, which is already listed in Hong Kong, plans to use the money to help develop new technologies and vehicle models, as well as to finance mergers and acquisitions and replenish working capital, according to a sales document filed on Tuesday.
Car manufacturers around the world are weathering an industry slump caused by the coronavirus outbreak. Geely last month reported a 43 per cent drop in first-half profit at 2.3 billion yuan as sales slumped by 19 per cent to 530,446 vehicles, after the pandemic closed factories and decimated demand. With the outbreak receding in China, sales have started to revive and carmakers are betting the world’s largest market can help them return to growth.
Geely is targeting full-year sales of about 1.32 million vehicles, down 3 per cent from 2019, helped by a second-half recovery in demand after the easing of coronavirus lockdowns.