After a 21-year journey, Chinese automaker Chery Automobile Co., Ltd. (9973.HK) has finally realized its dream of a public listing. On September 25, Chery officially went public on the Hong Kong Stock Exchange, pricing its shares at the top end of the range at HK30.75 per share. This successful IPO raised HK9.14 billion, making it the largest auto company IPO in the Hong Kong market this year.

Chery issued approximately 297 million H shares, with 10% allocated for public offering in Hong Kong and 90% for international placement, along with a 15% over-allotment option. The company's stock once soared to HK$33.94 per share on its debut, representing a gain of 10.37%.

Fundraising and Growth Strategy

According to its prospectus, Chery's global sales surpassed 2.295 million vehicles in 2024, a 49.4% year-over-year increase. The company has also seen a steady rise in the average selling price of its passenger vehicles, which grew by 33.5% between 2022 and 2024. During this period, the average selling price of its domestic and international vehicles rose by 37.0% and 19.4%, respectively.

Chery's financial performance has been on a strong upward trajectory. Its revenue grew from 92.62 billion yuan in 2022 to 269.90 billion yuan in 2024, with net profits increasing from 5.81 billion yuan to 14.33 billion yuan over the same period. As of March 31, 2025, the company's cash and cash equivalents stood at 37.5 billion yuan.

Photo/ Kong Zesi (NBD)

Bolstering Technology and Diversifying the Business

Industry experts believe the IPO proceeds will be crucial for Chery to stay competitive. The automotive sector is rapidly transitioning towards electrification and intelligent driving, which requires substantial capital investment for R&D. According to Frost & Sullivan, the global penetration rate of new energy vehicles is projected to rise from 23.0% in 2024 to 47.0% by 2030.

Chery's financial data reflects its growing focus on new energy vehicles (NEVs). The revenue from its NEVs increased from 13.2% in 2022 to 21.9% in 2024. In the first three months of 2025, NEV revenue accounted for 27.3% of the total, reaching 18.67 billion yuan.

The company has also introduced a new organizational structure to sharpen its market focus, creating four major business units. 

Overcoming Challenges on the Path to Listing

Chery's path to an IPO was long and complex. Initial plans were floated as early as 2004 but were repeatedly delayed due to factors like complicated equity structures and internal reorganization. The company's 2019 mixed-ownership reform was a critical turning point. This reform helped restructure its shareholding and provided a capital injection of 14.45 billion yuan.

The successful IPO signifies market confidence in Chery's business structure, management, and financial transparency. With a solid foundation and fresh capital, the company is well-positioned to capitalize on the rapid growth of the global new energy vehicle market and drive its long-term development.