Chery resumes IPO plans as market rallies

Chery resumes IPO plans as market rallies

 

http://autonews.gasgoo.com/auto-news/1011393/Chery-resumes-IPO-plans-as-mark
et-rallies.html

 

Shanghai, July 21 (Gasgoo.com) China's largest home-grown automaker Chery
Automobile Co has resumed preparations for an A-share initial public
offering (IPO) because stock markets have recovered, the Shanghai Securities
News reported today.

 

Chery Auto had applied for a domestic listing in June 2008 but the
application was shelved amid a market slump as the global financial crisis
struck home, the newspaper said, citing Chery's spokesman Jin Yibo.

 

Chery has resumed its preparations to go public as the country's securities
regulator lifted its nearly 10-month ban on domestic IPOs due to a strong
rebound in the stock market amid signs of economic recovery.

 

Jin did not provide Chery's financial details but said the automaker was
qualified for a public listing helped largely by a firming auto market,
though the company's R&D spending has reduced part of its profits. No
timetable or details about the size of the IPO were given.

 

Meanwhile, Jin also confirmed that Chery Auto and Jianghuai Automobile Co
(JAC), a van-maker also based in the eastern province of Anhui, had started
to consolidate their assets. Before their possible merger, the two companies
might cooperate first in the engine business.

 

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