KUALA LUMPUR, June 18 (Bernama) -- Bursa Malaysia’s key index finished marginally higher, supported by strong buying interest in consumer-related counters, amid mixed performance across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 1.40 points, or 0.08 per cent, to 1,711.39 from Tuesday's close of 1,709.99. The key index opened 12.36 points firmer at 1,722.35 and moved between 1,711.31 and 1,722.63 throughout the session. Market breadth was negative, with losers leading gainers 678 to 493, while 549 counters were unchanged, 1,016 untraded and 34 suspended. Turnover increased to 4.50 billion units worth RM3.45 billion from 3.93 billion units worth RM3.45 billion on Tuesday.
Key Takeaways
Deal Size: Chery Automobile targets up to HK$9.15 billion (US$1.2 billion) in Hong Kong IPO, the city’s biggest listing this year.
Pricing & Timeline: Offering 297.4m shares at HK$27.75–HK$30.75; final pricing Sept 24, trading to start Sept 25.
Investor Backing: Cornerstone investors committed up to US$587m, boosting confidence in demand.
Use of Proceeds: 35% allocated to R&D across passenger vehicle models; 25% to develop next-gen vehicleswithin 3 years.
Strategic Expansion: Chery accelerating entry into Europe, with new SUV launches in the UK under Chery, Omoda, and Jaecoo brands.
IPO Context
The deal marks Hong Kong’s largest IPO in 2025, standing out in a subdued capital-raising year dominated by secondary listings. By comparison, battery giant CATL’s May offering raised US$4.6b, setting the regional benchmark.
Strategic Growth Plans
Chery is positioning itself as a rising player in the EV and smart vehicle segment, leveraging proceeds to expand R&D, roll out diversified models, and strengthen next-gen vehicle capabilities. Its UK expansion highlights growing ambitions to penetrate Europe’s competitive auto market, challenging established brands with cost-competitive EVs and SUVs.
Investor View
EV Momentum: With global EV adoption accelerating, Chery’s IPO could attract strong institutional interest, particularly given cornerstone backing.
Hong Kong Market Sentiment: The deal will be closely watched as a test of investor appetite for Chinese automakers amid global trade frictions and EV competition.
Valuation Upside: R&D-heavy allocation signals long-term growth focus but also carries execution risks in crowded EV markets.
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