Caixin
Mar 04, 2021 07:19 PM
BUSINESS & TECH

Online Car Dealer Autohome Aims to Raise Nearly $1 Billion in Hong Kong

What’s new: New York-listed car-sales website Autohome Inc. is planning a secondary listing in Hong Kong in a HK$7.6 billion ($980.1 million) floatation, according to a company filing Wednesday.

The Beijing-based company, whose American depositary receipts are already traded in New York, will issue 30.3 million shares in the listing, with 10% going to retail investors and 90% for bigger institutional investors. The offering, which runs from Wednesday through next Tuesday, will start trading on the main board on March 15.

Autohome has set the upper limit of prices for retail investors at HK$251.8 per share.

Nearly one-third of the proceeds will be used for “technology and product development”, including artificial intelligence, big data and cloud services. Another 30% will be earmarked for “incubation of new businesses,” like online customer services for car sales. With 10% of earnings to be used for general corporate purposes, the remaining 30% will be used to make investment both at home and abroad.

The background: Autohome, which counts Ping An Insurance Group Co. Ltd. as its largest shareholder, allows car dealers and automakers to market their products through its website and provides an online marketplace for used car sales.

Autohome made nearly 40% of its revenue last year from providing marketing services for automakers, 36.9% from facilitating transactions for car dealers, and 23.2% from commissions for connecting buyers with lenders and insurers.

The company saw its profits grow 6.47% to 3.4 billion yuan ($525 million) last year on revenue of 8.7 billion yuan, which was up 15.76% year-on-year. It’s the largest online car advertising in China in terms of revenue, with a 30% market share, according to its filing to the New York bourse.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.

Contact reporter Anniek Bao (yunxinbao@caixin.com) and editor Heather Mowbray (heathermowbray@caixin.com)

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