China Changan Auto parent eyes overseas IPO-paper
SHANGHAI, Feb 9 (Reuters) - The state parent of Chongqing Changan Automobile Co. Ltd. (000625.SZ: Quote, Profile, Research), Ford's (F.N: Quote, Profile, Research) main Chinese partner, has injected its major assets into a listing vehicle, paving the way for an overseas float expected to raise 4 billion yuan ($497 million), state media said on Thursday.
The new firm, China Southern Auto Holdings Corp., has amassed 17 billion yuan in assets. It controls 52.5 percent of Chongqing Changan and has stakes in 14 auto parts subsidiaries of the parent firm, the official Shanghai Securities News said.
It has gained regulatory approval for an initial public offering overseas to fund capacity expansions, the paper said, without giving further details.
In November, China's No. 3 auto maker and Honda Motor Co. Ltd. (7267.T: Quote, Profile, Research)'s partner, Dongfeng Motor Group Co. Ltd., raised HK$3.97 billion (US$509 million) in an long-awaited share sale in Hong Kong.
Several other Chinese car makers are also planning IPOs to fund expansion.
Shanghai Automotive Group Co. Ltd., which has joint ventures with General Motors (GM.N: Quote, Profile, Research) and Volkswagen AG (VOWG.DE: Quote, Profile, Research), aims to raise US$2-US$3 billion in a Hong Kong listing this year.
Rival Beijing Auto, which has a joint venture with South Korea's Hyundai Motor Co. (005380.KS: Quote, Profile, Research) and DaimlerChrysler (DCXGn.DE: Quote, Profile, Research), plans to raise US$600 million in an overseas listing.
First Auto Works, China's largest vehicle maker and partner of Volkswagen, was eyeing an overseas listing within the next five years.
Car sales in China, the world's third-biggest vehicle market, grew 21.4 percent last year, picking up from relatively slow 15 percent growth in 2004.
Industry executive forecast similar growth this year driven mostly by demand for cheap and mid-price cars. ($1=8.0545 Yuan)
The new firm, China Southern Auto Holdings Corp., has amassed 17 billion yuan in assets. It controls 52.5 percent of Chongqing Changan and has stakes in 14 auto parts subsidiaries of the parent firm, the official Shanghai Securities News said.
It has gained regulatory approval for an initial public offering overseas to fund capacity expansions, the paper said, without giving further details.
In November, China's No. 3 auto maker and Honda Motor Co. Ltd. (7267.T: Quote, Profile, Research)'s partner, Dongfeng Motor Group Co. Ltd., raised HK$3.97 billion (US$509 million) in an long-awaited share sale in Hong Kong.
Several other Chinese car makers are also planning IPOs to fund expansion.
Shanghai Automotive Group Co. Ltd., which has joint ventures with General Motors (GM.N: Quote, Profile, Research) and Volkswagen AG (VOWG.DE: Quote, Profile, Research), aims to raise US$2-US$3 billion in a Hong Kong listing this year.
Rival Beijing Auto, which has a joint venture with South Korea's Hyundai Motor Co. (005380.KS: Quote, Profile, Research) and DaimlerChrysler (DCXGn.DE: Quote, Profile, Research), plans to raise US$600 million in an overseas listing.
First Auto Works, China's largest vehicle maker and partner of Volkswagen, was eyeing an overseas listing within the next five years.
Car sales in China, the world's third-biggest vehicle market, grew 21.4 percent last year, picking up from relatively slow 15 percent growth in 2004.
Industry executive forecast similar growth this year driven mostly by demand for cheap and mid-price cars. ($1=8.0545 Yuan)
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