Cherry intends to depart from Russia, according to media reports
In the bustling world of automobiles, Chinese automaker Chery has made a significant impact, particularly in the Russian market. The first eight months of 2021 saw over 79,800 cars sold in Russia, with Chery playing a significant role in these sales.
August 2021 was a particularly successful month for Chery, as they secured the third-largest market share with more than 11,000 cars sold. This impressive figure places them after Lada and Haval in the Russian market.
Chery's success in Russia is not a recent development. In fact, the Russian market is the automaker's largest overseas stock market, accounting for 25% of its revenue, or $5.6 billion, in 2024. This strong performance has led to Chery's plans to list its shares on the Hong Kong Stock Exchange.
The IPO is expected to offer 297.4 million shares, with the price range for each share set between HK$27.75 to HK$30.75 ($3.6-$3.9). Key investors will receive approximately 50% of Chery's shares, including a special investment fund controlled by the State-owned Assets Supervision and Administration Commission of the State Council of China, China International Capital Corporation, Hillhouse, and Greenwoods Asset Management.
The funds raised from this IPO will be used to expand the lineup of passenger cars, invest in overseas markets, and upgrade production capacity. The IPO could potentially be the largest for the automotive industry this year.
Despite rumours of Chery's intention to leave the Russian market, Chery Automobiles Rus has denied such claims. The company remains committed to its growth and success in Russia. Trading on the Hong Kong Stock Exchange is set to begin on September 25, and the final offer price will be determined on September 23.
In summary, Chery's strong performance in the Russian stock market has led to its decision to list its shares on the Hong Kong Stock Exchange. The funds raised from this IPO will be used to further expand its operations, and despite rumours to the contrary, Chery Automobiles Rus has denied any intention to leave the Russian market.
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