Baring backs Yongda Auto IPO

The private equity firm will invest between $96 million and $120 million in the deal, while Middle Eastern sovereign wealth fund Oman Investment Fund will buy $30 million worth of shares. Between them they will take between 34% and 41% of the deal, which aims to raise between HK$2.37 billion and HK$3.37 billion ($306 million to $435 million).

Hong Kong listing rules state that the top three investors cannot buy more than 50% of an IPO.

Yongda Auto plans to sell 312.2 million shares at between HK$7.60 and HK$10.80 apiece, which equates to 8.1x-11.5x its forecast P/E ratio for 2012. The IPO will involve a greenshoe allocation, providing demand is sufficient, to increase the deal size by 15%.

As well as BMWs, the company also sells other global brands such as Audi, Jaguar, Land Rover, Cadillac, Toyota, Honda, Nissan, Volkswagen and Hyundai. It has 66 sales outlets and has approval from the manufacturers to open another 25.

Last month, PAG became a cornerstone investor in the Hong Kong IPO of Shanghai-listed brokerage Haitong Securities, buying $300 million worth of shares as part of a offering that went on to raise $1.7 billion.

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• Topics
• PIPEs
• Greater China
• Consumer
• PAG
• Baring Private Equity Asia
• China
• automobiles
• IPO