Nexteer Automotive Corp. is planning to start measuring demand for an initial public offering (IPO) this week, two people privy with the matter told Bloomberg. According to the sources, Nexteer is seeking to raise around $400 million from the initial share sale. The sources told Bloomberg that the company may commence trading in Hong Kong late June or early July.
Reports over Nexteer’s planned IPO first surfaced in March 2013, when the company was speculated to be aiming to raise $500 million. According to Bloomberg’s sources, BOC International Holdings Ltd. and JPMorgan Chase & Co. are arranging the share sale.
Nexteer was originally part of Delphi Corp.'s spinoff from General Motors in 1999. The company, however, went back to GM after Delphi succumbed to Chapter 11 bankruptcy. GM sold Nexteer in 2010 to Pacific Century Motors, a firm backed by the Beijing municipal government. China’s largest aerospace company, Aviation Industry Corp., currently owns 51 percent of Nexteer through unit AVIC Automobile Industry Holding Co. [source: automotive news - sub. required]