Nexteer Automotive Group Ltd. has launched an initial public stock offering valued up to $325 million in Hong Kong. According to a term sheet of the transaction seen by Reuters, Nexteer is offering 720 million new shares in the IPO, which is set to be priced on June 26, 2013. The listing on the Hong Kong stock exchange is set slated for July 3.
Reports on the company’s plan to hold an IPO first surfaced in March 2013, when Nexteer was said to be aiming to raise $500 million. A report published two weeks ago said the targeted amount was at $400 million. 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]