(Yicai Global) July 4 -- The electric vehicle unit of China's Chery Automobile seems to have finally found a way, namely Shanghai's new Star Market, to go public, according to firm insiders. The subsidiary tried to conduct a backdoor listing in 2016.
Chery New Energy Automobile is pursuing an initial public offering on the Star Market because the board has lower requirements regarding assets and profitability, industry insiders, who wished to remain anonymous, told Yicai Global.
The Nasdaq-style market, formerly known as the Science and Technology Innovation Board, was officially launched on June 13 and aims to make it easier for tech startups to secure funding. The new board may particularly attract carmakers that need to garner big stacks of money to get started with production.
Chery New Energy is in contact with external investors to prepare for the IPO, the Beijing News reported earlier this month. The Anhui-province based firm dropped 'technology' off its name to get ready for listing, Zheng Tianbao, deputy general manager, told Chinese media last month.
Conch Profiles and Science intended to purchase a controlling stake in Chery New Energy in May 2016, which would have provided a way for the car company to access Shanghai's bourse, but in two months the Wuhu-based plastics maker walked back its plan, giving a reason that the target firm has not yet obtained a license to produce NEVs. Chery New Energy secured such permit last August.
Founded in 2010, Chery New Energy is in the top ten of domestic carmakers. In the first five months of this year, the firm more than quadrupled its sales to 25,200 units from the previous year.
Editor: Xu Wei, Emmi Laine