SAIC mo­tor unit said to pick banks for $500m plus IPO

China Daily (Canada) - - BUSINESS - By BLOOMBERG

Anji Au­to­mo­tive Lo­gis­tics Co, a unit of China’s largest car­maker SAIC Mo­tor Corp, has picked banks for an ini­tial pub­lic of­fer­ing that could raise at least $500 mil­lion, peo­ple with knowl­edge of the mat­ter said.

The Shang­hai-based lo­gis­tics provider is work­ing with China In­ter­na­tional Cap­i­tal Corp, HSBC Hold­ings Plc and JPMor­gan Chase & Co to ar­range the share sale in Hong Kong, ac­cord­ing to the sources. The of­fer­ing could take place early next year, they added, ask­ing not to be iden­ti­fied as the in­for­ma­tion is pri­vate.

Pro­ceeds from the of­fer­ing could help Anji ben­e­fit from grow­ing ve­hi­cle de­mand in the world’s big­gest car mar­ket. China re­ported sales of 25 mil­lion au­to­mo­biles last year, up 4.7 per­cent from the year be­fore, ac­cord­ing to theChina As­so­ci­a­tion of Au­to­mo­bile Man­u­fac­tur­ers.

Anji is pre­par­ing a Hong Kong IPO amid the slow­est start for new of­fer­ings in the city since 2013, ac­cord­ing to data com­piled by Bloomberg. Hong Kong first-time share sales have raised $4.2 bil­lion this year, com­pared with $7.1 bil­lion dur­ing the same pe­riod in 2015, the data show.

The lo­gis­tics unit is study­ing the fea­si­bil­ity for an over­seas list­ing, SAIC said in a state­ment to the Shang­hai stock ex­change last week, which didn’t pro­vide fur­ther in­for­ma­tion. De­tails aren’t fi­nal­ized and could still change, the peo­ple said. A spokesman for SAIC didn’t im­me­di­ately re­spond to calls seek­ing com­ment, while rep­re­sen­ta­tives for CICC, HSBC, JPMor­gan de­clined to com­ment.

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