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.