TPG-Backed China Grand Auto To Hold Off HK IPO

Shanghai-based car dealership China Grand Automotive Services Co., Ltd., backed by TPG Capital, has reportedly put on hold a planned Hong Kong IPO to raise around US$800 million, according to media reports.

Representatives of TPG did not respond to inquiries to confirm the news.

The company may not launch an IPO this year, and it is considering other listing locations instead, says the reports.

In February 2007, TPG invested reportedly around US$100 million in the company, which embarked on a path of rapid expansion, acquiring dealerships in Anhui, Gansu, Hebei, Ningxia, Shandong province, and Chongqing city during the next three years.

On Aug 19 this year, China Grand Auto and Alibaba Group signed a strategic cooperation agreement to jointly build a used car O2O (online-to-offline) platform.

Several years ago, China Grand Auto reportedly targeted an IPO in Hong Kong to raise around US$1 billion.

China Grand Auto is the number one passenger vehicle dealership, the number one passenger vehicle finance leasing provider, and the largest used vehicle trading agent in China, according to its website.

In 2013, the company recorded about RMB84 billion (US$13.7 billion) in operating revenue and about 546,300 vehicles in new car sales. It has a dealership network covering 23 provinces, municipalities and autonomous regions, and owns 494 outlets across the country.

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