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UPDATE 1-Daimler-backed BAIC Motor opens flat in HK debut

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HONG KONG, Dec 19 (Reuters) - Shares in BAIC Motor Corp Ltd , part-owned by Germany's Daimler AG, opened flat at HK$8.90 in their Hong Kong trading debut on Friday, despite concerns a slowdown in China's economy will curb demand for new vehicles next year.

The Chinese automaker raised $1.42 billion after pricing the deal near the middle of a HK$7.60 to HK$9.80 marketing range. .

Shares in the state-controlled company opened at their IPO price, while the benchmark Hang Seng index rose 1.46 percent.

The IPO price represents a forecast price-to-earnings ratio of 7.4 times for 2015, compared with an average of 8.3 times for Chinese automakers, according to Sun Hung Kai Financial estimates.

The Hong Kong brokerage had recommended investors participate in the IPO at a price below HK$8.50 per share, in part because of concerns over a slowdown in passenger vehicle demand in China.

Growth in China's auto market, the world's biggest, will halve to 7 percent this year, weighed down by a slowing economy, the head of an industry body said in late October.

The company plans to use 60 percent of the IPO proceeds to help fund the expansion of its vehicle production line and an engine factory, with another 15 percent set aside to pay down bank loans and 10 percent to develop new vehicles.

BAIC Motor is the passenger car unit of state-owned Beijing Automotive Group (BAIC). Last year, Daimler sealed a deal to buy a 12 percent stake in BAIC Motor to boost its China presence ahead of the long-expected IPO.

Citic Securities, Deutsche Bank, HSBC and UBS were hired as joint sponsors for the IPO, with China Merchants Securities, CLSA and Morgan Stanley also acting as joint bookrunners.

(Reporting by Elzio Barreto; Editing by Stephen Coates)