Chinese auto equipment maker Autel seeks to raise $175m in STAR Market IPO

Auto factory. Photographer: Stefan Kleinowitz/Bloomberg

Autel Intelligent Technology Corp, a Chinese firm that develops automobile electronic equipment, is seeking to raise 1.218 billion yuan ($175 million) in an initial public offering (IPO) on the STAR Market.

The company, which filed the IPO application in late November 2019, is offering an aggregate of 50 million shares at 24.36 yuan ($3.50) apiece.

Established in September 2004, Autel is primarily involved in research and development, production, and sales of electronic components, diagnostic and analysis systems, as well as accessories for automobiles. The company delivers products and services to over 50 countries and regions including the US, Germany, Australia and China.

Shenzhen-based Autel generates less than one-fifth of its revenue from China. Some of the firm’s largest corporate clients include Chinese automobile service and maintenance firm Lenkor, American automotive parts provider Advance Auto Parts, auto diagnostic equipment developer UUC Technology, and Florida-based automotive tool & equipment specialist Integrated Supply Network.

Autel registered over 900 million yuan ($129 million) in operating income in 2018, up 24.65 per cent compared to nearly 722 million yuan ($104 million) in 2017. The net profit reached about 312 million yuan ($45 million) in 2018, more than doubling the number in 2017, according to the company’s prospectus.

Li Hongjing, the company chairman and president, is the largest shareholder of Autel with 42.44 per cent shares.

Fortune Capital, a Shenzhen-based venture capital firm that manages 30 billion yuan ($4.31 billion), holds a combined 8.29 per cent stake in Autel through affiliates. Fortune Capital recorded investments in more than 500 companies, including 161 exits from 89 IPOs and 72 mergers and acquisitions, shows the company website.

Proceeds from the IPO will mainly be used to finance the construction of a regional division and an R&D centre in northwestern China’s Xi’an city. The company also plans to build a cloud platform to offer automobile diagnostic services.

Hong Kong-listed Chinese investment bank CITIC Securities is the lead underwriter of the deal.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.