Geely board withdraws Shanghai Star board listing request
Geely Automobile Holdings Ltd. has decided to withdraw its application for a proposed yuan share issue on Shanghai’s Nasdaq-style Star board, citing the “company’s business decisions and strategic adjustments," according to a Hong Kong stock exchange filing Friday.
The decision not to proceed with the listing won’t have a material adverse impact on the financial position or operation of the group, China’s automaker said. Geely will “actively promote" a yuan share issuance “when relevant conditions are met," according to the filing, which didn’t provide further details.
Geely’s plans to list on the Star board were in doubt as early as March, when China’s stock market regulator questioned whether the company was high tech enough for the bourse. Geely originally received the listing approval in September, believing a debut on the Star board would offer a higher valuation than a second listing on the main board in Shanghai or Shenzhen.
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Typically it takes companies less than three months from the time they received exchange sign-off to the time they get the green light from the China Securities Regulatory Commission to complete the registration process.
In a separate filing, Geely said its electric vehicle arm Zeekr Intelligent Technology Holding Ltd will explore “different external financing options".
Geely plans to use Zeekr take on tech giants like Apple Inc. and Xiaomi Corp., which also have ambitions to enter the burgeoning EV market. In China, Geely and traditional automakers like Volkswagen AG are jockeying with Tesla Inc., Nio and Xpeng for a slice of what is now the world’s largest EV market.