KKR-Backed Rundong Automobile Completes $124M HK IPO

Jiangsu province-based Chinese automobile dealership company Rundong Automobile Group has raised US$124 million in a Hong Kong IPO, according to media reports.

Rundong sold 268.62 million shares at HK$3.58 per share, at the lowest end of its original price range of HK$3.58 to HK$3.98.

The proceeds will be used for acquisitions, as well as setting up 14 luxury vehicle dealerships. The company will also spend 30% of the proceeds repaying bank loans.

In February, Rundong was reportedly planning a Hong Kong IPO to raise as much as US$300 million during the first half of 2014.

KKR & Co. previously invested US$100 million in Rundong Auto in 2010 for an undisclosed stake.

Rundong Auto currently operates more than 50 dealerships in eastern China, featuring luxury brands including BMW and Land Rover. Its net profit for 2013 increased by 172.3% to RMB248.4 million (US$40.3 million).

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