HONG KONG -- China's third-largest carmaker Dongfeng Motor Corp. is preparing for a Hong Kong initial public offering, possibly by the end of this year, banking sources said Monday.
The South China Morning Post reported Monday that the issue could be worth $1 to $2 billion, but banking sources familiar with the potential deal told Reuters it was too early to know how big the offering might be.
"They hope to list this year," one source said.
The company and its mainland-listed Dongfeng Automobile Co. Ltd., as well as its joint ventures with partners PSA/Peugeot-Citroen and Nissan Motor Co., all had no immediate comment and said they were unaware of the report.
China International Capital Corp, the Beijing investment banking joint venture between China Construction Bank and Wall Street's Morgan Stanley, has been retained by the carmaker as an adviser, sources said, which would give the bank an inside track to be one of the deal's underwriters.
Chinese companies taking advantage of heavy investor demand for exposure to the country's booming economy are planning roughly $15 billion in overseas share sales this year.