(Bloomberg) -- Chery Holding Group Co. has picked China International Capital Corp., GF Securities Co. and Huatai International Ltd. to work on a potential initial public offering of its automotive unit, people familiar with the matter said.
Chery Automobile Co. could list in Hong Kong as soon as next year, the people said, asking not to be identified because the information isn’t public. The company may seek a valuation of more than 100 billion yuan ($14 billion) in the IPO, some of the people said.
Deliberations are ongoing and details such as the size and timing of the IPO may change, the people said. More banks may be added later, they said.
CICC and GF Securities declined to comment. Chery and Huatai didn’t respond to requests for comment.
Activity is picking up in Hong Kong’s IPO market after China’s stimulus pledges lifted stocks. Since the start of September, share listings have raised over $6 billion, which is more than all of last year, data compiled by Bloomberg show.
Chery Auto is one of China’s biggest car exporters and one of only a few not listed. It is a key asset for Chery Group, which is also involved in financial services and real estate.
The group previously considered an IPO in mainland China for the carmaker, Bloomberg reported last year.
Founded in 1997, Chery Auto sells cars under brands Chery, Tiggo and Arrizo, according to its website. It has been looking to expand its production facilities globally, including in Europe.
--With assistance from Dong Cao and Linda Lew.
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