Chery gears up for US$1.5 billion Hong Kong IPO without Wall Street banks
Chery is working with the Hong Kong units of CICC, Huatai Securities and GF Securities as joint sponsors
One of this year’s biggest listings is coming together in Hong Kong without the involvement of Wall Street banks.
Chery Automobile’s planned Hong Kong initial public offering (IPO), which people familiar say could raise about US$1.5 billion, is being led by an all-Chinese bank roster after others decided not to participate. JPMorgan Chase is no longer on the deal after being chosen by Chery in late 2024 to work on the offering, the people said.
JPMorgan dropped off the deal before signing a formal mandate, the people said. Some other international banks have also shied away from working on the transaction, according to the people.
Major share sales typically include global banks in the capacity of adviser, underwriter or similar. For example, Contemporary Amperex Technology’s potential US$5 billion listing – one of Hong Kong’s most anticipated deals – has Bank of America and JPMorgan on the lead arranging side.
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Chery, one of China’s top car exporters and a rarity among them for not being listed, is working with the Hong Kong units of China International Capital (CICC), Huatai Securities and GF Securities as joint sponsors on its listing.