Auto firm plans public listing
( 2003-06-20 07:44) (China Daily)
Beijing Automotive Investment Co is planning to list publicly to raise more money to revive the struggling auto industry in China's capital.
"We are in talks with some stock brokers to formulate a programme to go public at home as the first step,'' said Xu Heyi, chairman of Beijing Automotive Investment.
The company also aims to go public on overseas stock markets in the future, Xu said.
But he did not reveal how much it hoped to raise through the domestic listing.
"To go public is part of our strategy to speed up development of the auto industry in Beijing,'' Xu told China Daily.
The company has recently absorbed 1.4 billion yuan (US$169.2 million) in new capital from five investors, including Beijing Automotive Holdings Corp (BAHC), Shougang Group -- one of China's biggest steel producers based in Beijing -- and three private firms from Beijing and Shanghai.
Based on the new investment, BAHC remains the largest shareholder of Beijing Automotive Investment by controlling a 25.3 per cent stake, down from 55.6 per cent previously.
Beijing Automotive Investment now has nine shareholders with total assets of 2.57 billion yuan (US$310.7 million).
Xu said most of the new investment will be used to expand production capacity at Beijing Hyundai, Beijing Automotive Investment's joint venture with the South Korean Hyundai Motor Co.
Xu is also chairman of the joint venture.
"The joint venture plans to increase its annual capacity to 100,000 units next year, to 300,000 units by 2005, and to 550,000 units by 2008,'' Xu said.
Beijing Automotive Investment and Hyundai have invested 2.45 billion yuan (US$296.2 million) in the 50-50 joint venture which now has a capacity of 50,000 units.
The joint venture, which started operation at the end of last year, has produced more than 20,000 units of Hyundai's Sonata sedan so far this year.
Beijing Hyundai will launch a smaller Elantra car during the third quarter of this year, Xu said.
The joint venture will also begin producing a high-end sedan for Hyundai at the end of this year.
The joint venture has become one of the biggest growth engines of the auto industry in Beijing.
The industry's other two important players are Beiqi Futian-- one of China's biggest light truck makers owned by BAHC -- and Beijing Jeep, a sport utility vehicle joint venture between BAHC and German-US DaimlerChrysler AG.
The industry spent the past three years in the red because of outmoded product portfolio and poor management.
However, it became profitable during the first quarter of this year mainly as a result of vehicle sales growth.
Xu said Beijing Automotive Investment will also invest in components production, car sales and services.
It is expected to clinch components deals with two companies at the beginning of next month, according to Xu.
He said Beijing Hyundai will increase its number of franchised dealers from 42 to 100 nationwide by the end of this year.
|
