This article only represents the author's own views.
A chance meeting in Australia a decade ago marked the start of a long road that could soon peak with a Hong Kong listing for New Gonow Recreational Vehicles Inc. The maker of towable recreational vehicles (RV) applied for the listing in May, and last week received a necessary green light from the China Securities Regulatory Commission (CSRC) to move ahead.
The company plans to issue up to 276 million shares, according to the CSRC post, which didn’t provide any fundraising targets. Based on a likely market value of between $300 million and $500 million by our calculations, the deal could raise around $50 million if it moves ahead. Its sole underwriter is Huatai International, the global arm of one of China’s leading brokerages, which also suggests this sort of mid-sized fundraising target.