(Yicai) Dec. 18 -- The spokesperson of Chery Holding Group confirmed that the company’s subsidiary Chery Automobile is planning to go public.

Regarding recent media reports, the only true information is that Chery Auto is preparing for an initial public offering, Jin Yibo told Yicai.

Beijing-based IDG Capital is in contact with Chery to acquire a stake in Chery Auto, a recent media report claimed. According to other news, Chery Auto will submit an IPO application next year, which would value the company up to CNY150 billion (USD21.1 billion).

Founded in 1997, Wuhu-based Chery is one of China’s first private vehicle manufacturers. Chery has tried to go public several times over the past few years but always failed.

Chery introduced Qingdao Wudaokou New Energy Industrial Fund as its largest shareholder in 2019. In February last year, Chinese iPhone supplier Luxshare Precision Industry acquired a nearly 20 percent stake in Chery, a 7.9 percent stake in Chery Auto, and a 6.2 percent stake in Chery New Energy Automotive for a total of CNY10.1 billion from Luxshare.

In recent years, Chery has developed rapidly, achieving profitability in the three years between 2019 and 2021. Chery Auto’s sales rose 28 percent to 1.2 million units last year from the previous one. It sold 1.7 million units in the first 11 months of this year, up 48 percent from a year earlier, with sales in November alone reaching 212,100 units and achieving growth for 11 straight months.

Chery Auto exported 837,000 units between January and November, an increase of 110 percent from the same period last year.

Editor: Futura Costaglione