BAIC Motor, a subsidiary of the state-owned Beijing Auto Group and the Chinese partner of Daimler AG and Hyundai Motors Co., is planning for a $2 billion initial public offering in Hong Kong, according to the Wall Street Journal. Reuters reports that the IPO listing could come as early as the second quarter of 2014.
BAIC, China’s fifth-largest auto manufacturer, plans to use the IPO to gain a larger share of the Chinese auto market and start acquiring other smaller automakers. The company recently announced its goal to sell 2.6 million vehicles in 2014, an increase of 23 percent from last year. The company also acquired Zhenjiang Automobile in August, a small automaker in Jiangsu province.
News of BAIC Motor preparing for a Hong Kong IPO comes just two months after Daimler AG purchased a 12 percent share in the company and two seats on its board for $845 million. Reuters reports that if successful, the BAIC Motor IPO would rank among the world’s top five IPOs by value in the auto industry.