Great Wall Motor plans $765m mainland China IPO

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FE Team | Published: April 19, 2011 00:00:00 | Updated: February 01, 2018 00:00:00

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SHANGHAI, April 18 (Reuters): Great Wall Motor Company Limited aims to raise more than five billion yuan ($765 million) from an initial public offering (IPO) in mainland China later this year, Chief Executive Wang Fengying told the reporter Monday. Great Wall Motor joins Warren Buffett-backed BYD Company Limited in seeking to raise funds via a second listing in the mainland as Chinese carmakers look to upgrade their technology capabilities and expand product ranges at a time when sales are expected to slow. Great Wall Motor and BYD had submitted listing applications to the China Securities Regulatory Commission, local media reported earlier this month. Great Wall Motor would use proceeds from the IPO to expand its auto parts business, according to local media. BYD said last year that it would seek to list on the Shenzhen Stock Exchange because the company started its business in Shenzhen -- the southern boomtown neighbouring Hong Kong. BYD said it aimed to sell up to 100 million shares and would use the proceeds to fund its green car operations. Earlier this month, Great Wall reported that March auto sales rose 44 per cent from a year earlier. "The above-industry growth rate looks positive for the stock price," said Samsung Securities analyst Steve Man in Hong Kong, in a research note published on April 11. Auto sales in China are expected to slow this year after the government withdrew policy incentives that had helped elevate the country to the world's top auto market in 2009. Some car companies including BYD have already cut prices to boost growth.