Chery mulls Hong Kong IPO for USD 7 billion auto unit: Report 

China's Chery Holdings Co, is mulling listing its auto unit in Hong Kong at a USD 7 billion valuation, Bloomberg reported citing persons in the know. 

Sources told the newswire on condition of anonymity, that the Chery Holdings Co is on the lookout to rope in bankers for the potential listing. Talks are ongoing and contours of the listing such as the size are subject to change, the newswire learned from sources. Bloomberg could not elicit a timely comment from Chery. 

Chery Auto is one of China’s biggest car exporters and among the few unlisted firms. It is a key asset for Chery Group, which also offers financial services and real estate, Bloomberg noted. 

Chery had earlier assessed listing in mainland China for the carmaker, Bloomberg had noted last year. 

After years of a fall in volumes, Hong Kong’s IPO market looks to be recovering. Bloomberg data notes that public listings in the financial hub have raised $7.2 billion so far this year.

Chery Auto said last year it aimed to establish subsidiaries in Europe to sell directly to customers in the UK, Germany and France. It has since pushed back a goal to bring electric-vehicle production to Europe by a year after the European Union’s imposition of tariffs on EV imports from China, Bloomberg noted.