Kuala Lumpur, 17 September 2025 — China’s Chery Automobile Co. has launched what may be Hong Kong’s biggest initial public offering (IPO) of the year, setting its target at HK$9.15 billion (about US$1.2 billion). The prospectus, released on Wednesday, shows that Chery intends to sell 297.4 million shares, with each priced between HK$27.75 and HK$30.75. Final pricing is expected on 24 September, and trading is scheduled to commence a day later.
Chery, known for its Chery, Jetour and iCAR brands, is leveraging the IPO to broaden its reach in the increasingly competitive electric and smart vehicle market. The company plans to use around 35 percent of the proceeds to boost research and development of multiple passenger-vehicle models. Another 25 percent will go towards developing its next-generation vehicle over the next three years, signaling a long-term strategy that goes beyond incremental upgrades.
What makes this IPO especially noteworthy is its scale. At US$1.2 billion, it stands as Hong Kong’s largest IPO so far in 2025—an important indicator given that much of the city’s capital market activity this year has come from secondary share sales by mainland Chinese companies rather than primary offerings. Cornerstone investors have already committed up to US$587 million into Chery’s IPO, demonstrating strong institutional interest.
Beyond China, Chery has designs on Europe. In July the company revealed its initiative to launch the Chery brand in the United Kingdom with two new sport-utility vehicle (SUV) models. This follows its recent launches of the Omoda brand in Britain last August and the Jaecoo brand in early 2025. Expansion into Europe is clearly part of Chery’s broader global ambition, as it seeks to position itself among EV and smart-vehicle players beyond its traditional markets.
However, Chery’s strategy unfolds in a challenging landscape. Twenty-first-century auto competition is intensifying, especially in EVs and smart vehicles, with incumbents and new entrants alike pushing hard on innovation, charging infrastructure, advanced software, and regulatory compliance. Investors will be closely watching how Chery balances scale, technology investment, cost control, and market acceptance in overseas markets. If all goes to plan, the IPO could both provide capital for expansion and serve as a signal to rivals and markets that Chery aims to compete on multiple fronts.
