Jiangsu province-based Chinese automobile dealership company Rundong Automobile Group is planning an IPO in Hong Kong to raise as much as US$138 million, according to an official prospectus.
Rundong plans to sell 268.62 million shares at HK$3.58 to HK$3.98 per share, to raise as much as HK$1.07 billion (US$138 million).
The proceeds will be used for acquisitions, as well as setting up 14 luxury vehicle dealerships. The company will also spend 30% of the proceeds repaying bank loans.
The IPO is expected will be priced on August 5, 2014.
In February, Rundong was reportedly planning a Hong Kong IPO to raise a much larger US$300 million during the first half of 2014.
KKR & Co. previously invested US$100 million in Rundong Auto in 2010 for an undisclosed stake.
Rundong Auto currently operates more than 50 dealerships in eastern China, featuring luxury brands including BMW and Land Rover. Its net profit for 2013 increased by 172.3% to RMB248.4 million (US$40.3 million).
Bank of America Merrill Lynch and Morgan Stanley will be the joint bookrunners. CCB International and Haitong International will also act as joint bookrunners.
