Hong Kong: Chinese automaker BAIC Motor, part-owned by Germany’s Daimler AG, hopes to raise between $1.22 billion (Dh4.48 billion)-$1.57 billion (Dh5.76 billion) in its Hong Kong initial public offering (IPO).
BAIC is offering shares in a range of HK$7.60 (Dh3.6)-HK$9.80 each, which translates into a 2015 price-to-earnings multiple of 6.3 to 8.3, IFR, a Thomson Reuters publication, said.
Cornerstone investors have committed between $700-800 million to the IPO, the report added.
BAIC Motor is the passenger car unit of ambitious state-owned Beijing Automotive Group (BAIC). Last year, the high-end German auto maker Daimler sealed a deal to buy a 12 per cent stake in BAIC Motor for 640 million euros (Dh2,887 million) to boost its China presence and secure a foothold before the long-expected IPO.
