March 7 (Bloomberg) -- Beijing Automotive Group Co., which makes vehicles with Daimler AG and Hyundai Motor Co., will seek to sell shares in its car unit in China after completing a Hong Kong initial public offering.
The Hong Kong IPO will take place by the end of this year “if it moves fast,” Beijing Auto Chairman Xu Heyi said in an interview at the National People’s Congress in Beijing yesterday. “We will come back for an A-share listing after that.”
BAIC, as the company is known, traces its roots to making sidecar motorcycles used in the Korean War and has said it plans to make “world-class” cars by 2025 and hired Ferrari designer Leonardo Fiorvanati to help improve its brand appeal. The fundraising will help the automaker’s aim of expanding vehicle sales more than 70 percent by 2015.
The company, based in Beijing, hired Goldman Sachs Group Inc. and Morgan Stanley for the Hong Kong IPO of its car unit and may seek more than $1 billion in the share sale, three people with knowledge of the matter said in January. That would be the biggest by an automaker since General Motors Co.’s $18.1 billion offering in 2010, data compiled by Bloomberg show.
The timing for the car unit’s yuan-denominated A-share listing will depend on market conditions, which are hard to predict, Xu said.
BAIC is targeting to sell 3.6 million vehicles by 2015, from a projected 2.1 million units this year, according to Xu. The automaker wants to boost the proportion of medium to high-end car sales, which are more profitable, to 50 percent of total deliveries from the current 36 percent, he said.
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