Mando expected to hold back on IPO of unit in Hong Kong

Korean auto parts maker Mando will likely delay listing its Chinese subsidiary in Hong Kong until next year, financial sources said yesterday.

Mando said earlier it would complete the IPO of its Chinese holding firm Mando China Holdings in Hong Kong on Dec. 7 in a bid to secure operating capital.

A number of sources in Hong Kong who are familiar with the matter said it will be difficult to list Mando China by the end of this year as bookrunners are re-adjusting the value of Mando’s Chinese operations.

The main underwriters for Mando’s IPO have been Deutsche Bank Securities and J.P. Morgan.

One of the sources told Yonhap News Agency that a major Chinese bank has recently expressed keen interest in becoming an underwriter for Mando’s IPO.

In August, Mando, an affiliate of Korea’s Halla Group, established the Chinese affiliate with an initial capital of 7 billion won ($6.25 million).

The new entity holds controlling stakes in Mando’s eight Chinese operations in Harbin, Ningbo, Suzhou, Beijing, Tianjin and Shenyang.

Yonhap