Jun 26, 2021 04:46 AM

Geely Drops Plan for Share Sale on STAR Market

(Bloomberg) — Geely Automobile Holdings Ltd. withdrew its application for a share sale on Shanghai’s Nasdaq-style STAR Market, citing “business decisions and strategic adjustments,” according to a filing Friday with the Hong Kong stock exchange.

The decision not to proceed won’t have a material adverse impact on the financial position or operation of the group, The Chinese automaker said. Geely will “actively promote” a share issuance “when relevant conditions are met,” according to the filing, which didn’t provide further details.

Geely’s plan to list on the STAR Market were in doubt as early as March, when China’s stock market regulator questioned whether the company was high-tech enough for the bourse. Geely originally received listing approval in September, expecting a debut on the STAR board to offer a higher valuation than a secondary listing on the main board in Shanghai or Shenzhen.

Typically it takes companies less than three months from the time they received exchange sign-off to the time they get the green light from the China Securities Regulatory Commission to complete the registration process.

In a separate filing, Geely said its electric vehicle arm Zeekr Intelligent Technology Holding Ltd. will explore “different external financing options.”

Geely plans for Zeekr to take on tech giants like Apple Inc. and Xiaomi Corp., which also have ambitions to enter the burgeoning EV market. In China, Geely and traditional automakers like Volkswagen AG are jockeying with Tesla Inc., Nio and Xpeng for a slice of what is now the world’s largest EV market.

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