TPG backed China Grand Automotive Services Co had plans to list at least USD500 million of its shares in the Hong Kong bourse. The said initial public offer was confirmed by two individuals with knowledge of the transaction.
The Shanghai based Chinese car dealer is planning to start the share sale by early 2014 according to the two anonymous sources. Goldman Sachs Group Inc and China International Capital Corp are managing the IPO.
The said IPO would become the largest for a car dealership in Hong Kong since December 2010. The last car dealership IPO was conducted by China Zheng Tong Auto Services Holdings Ltd, which raised USD514 million according to Bloomberg compiled data. Since that IPO price, China ZhengTong has declined by as much as 39%.
An earlier IPO plan was drafted back in April 2010, with a target volume of USD1 billion for the Hong Kong listing. For this new plan, company officials were unavailable to provide a response to a phone inquiry made at the Shanghai head office of China Grand Auto.
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