China’s Geely Automobile moves towards mainland listing

Employees wearing face masks following the coronavirus disease outbreak work on a Lynk & Co car production line at Geely’s Yuyao plant in Ningbo city, Zhejiang province, China. REUTERS

Geely Automobile Holdings Ltd said on Wednesday its board had approved a preliminary proposal for the possible issue of renminbi shares and a listing on mainland China’s Nasdaq-like STAR board.

The Zhejiang-based automaker, whose parent is Zhejiang Geely Holding Group, is currently listed on the Hong Kong Stock Exchange with a market capitalisation of 116.77 billion HKD ($15.07 billion).

Geely Automobile and its sister company Volvo Cars — which Zhejiang Geely Holding Group bought from Ford Motor Co in 2010 — are planning to merge and list in Hong Kong and possibly Stockholm.

Apart from Volvo Cars, Zhejiang Geely Holding Group also holds a 9.7 percent stake in German luxury automaker Daimler AG, bought in 2018.

It said in a filing that the new renminbi shares on the Shanghai Stock Exchange would not involve conversion of existing shares. The board will hold further talks on the size of the issue.

The money raised will be used for “business development and general working capital of the Group”, it said, without elaboration.

“We believe such proceeds are likely to be used for the Volvo merger, although Geely cannot explicitly state it before the merger approval by disinterested shareholders,” said Shi Ji, an analyst at Haitong International.

“It is a good way for the company to raise funds as valuations in the A-share market are usually higher than the H-share market,” Shi added, comparing mainland and Hong Kong markets.

Geely Automobile plans to roll out six new models under the Geely, Lynk&Co and Geometry marques this year. It sold 1.36 million cars in 2019 and is targeting sales of around 1.4 million units this year. It reported a profit of 8.19 billion yuan ($1.16 billion) last year.

Last month, it raised 6.48 billion HKD from a share placement. (REUTERS)

Related post

Aprilia SXR 125 unveiled in India

From the Hamrobazar blog: https://blog.hamrobazaar.com/aprilia-sxr-125-price-in-nepal/ The Aprilia SXR 125 has been showcased in India, with an announced price tag of INR 1.16 lakhs (ex-showroom). It is expected to arrive in Nepal after a couple of months. The Aprilia brand has made quite a mark amongst the youth here, who continue to be charmed by two […]

Read More

BECOME A DEALER – Crossfire Motorcycles Nepal

Classic Wheels Export & Import Pvt. Ltd. (importer of Crossfire and ItalicaMoto) is looking for new dealers all over Nepal. Interested parties can visit https://crossfirenepal.com/become-a-dealer/. Final date for submission of the form is 31st Baisakh, 2078. For further details or queries, please feel free to contact us at +977 9860687618

Read More

MAW Vriddhi launches Foton showroom in Nepal

MAW Vriddhi Commercial Vehicle Pvt. Ltd., the authorized distributor of Foton Motor in Nepal, has launched its showroom in Balkumari, Lalitpur on 21st March. The new state-of-the-art showroom spreads 2500 square feet of area. As part of Foton’s big plan in Nepal, this showroom is a significant move for the marque. The official opening of […]

Read More

Royal Enfield Interceptor 650: A perfect balance of style and power

It was love at first sight when Royal Enfield launched the Interceptor 650 in India. The retro look and vintage charm of the bike kept me on Youtube for hours on end, looking and marvelling at bike reviews. And when I got the chance to take the Interceptor 650 for a spin, I was over […]

Read More

Bullet Ama: Inspiration to Many

We commonly hear the phrase ‘Age is just a number’ yet see very few scenarios of it being implemented. The society that we live in now, is a constrained bubble where everything and everyone is placed under certain standards that are to be fulfilled, especially for women. There are very few women like Pushpalata Acharya […]

Read More

Shadow Top Brand Shadow