25 August 2019

Rundong raises US$124 million in Hong Kong IPO

Luxury car dealer China Rundong Auto Group Ltd., backed by KKR & Co. LP, has raised US$124 million in its Hong Kong initial public offering after pricing its offering at the low end of its indicative range, The Wall Street Journal reported on Wednesday, citing the company’s term sheet.

The Jiangsu province-based dealer, whose brand portfolio includes BMW, MINI, Land Rover and Jaguar, 268.6 million shares at HK$3.58 (46 US cents) each, representing six times the company’s forecast earnings per share for this year. The indicative price range was HK$3.58 to HK$3.98.

Rundong’s net profit more than doubled to 248.4 million yuan (US$40.2 million) last year while sales rose 23.5 percent to 11.6 billion yuan, according to its prospectus.

Bank of America Merrill Lynch and Morgan Stanley are the joint sponsors and global coordinators of the offering.

The shares will start trading on the Hong Kong Stock Exchange on Aug. 12, the report said.

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