Chery Auto (09973.HK) shares are soaring 12.65% in their Hong Kong trading debut on Thursday, following a highly successful initial public offering (IPO) that garnered significant investor interest. The strong performance comes as no surprise given the overwhelming demand seen during the company's public offering phase.

The Chinese automaker priced its global offering at HK$30.75 per share, the upper limit of its indicative range, raising approximately HK$8.879 billion (US$1.14 billion) in net proceeds. The Hong Kong public offering portion was particularly noteworthy, being oversubscribed by an impressive 308.18 times, highlighting the robust demand from retail investors. The international offering also saw strong interest, being 11.61 times oversubscribed.

Chery Auto's successful listing and subsequent stock surge can be attributed to several factors, including the company's strong market position in China's rapidly growing automotive sector and the overall positive sentiment towards new energy vehicle manufacturers. The significant oversubscription rates indicate high investor confidence in Chery's future prospects and growth potential. As the automotive industry continues its shift towards electrification, Chery Auto's debut on the Hong Kong Stock Exchange positions it well to capitalize on these trends and expand its market presence.