Chery Automobile, China’s second-largest carmaker by volume, rose 8% in the Hong Kong grey market.

Chery Automobile aims to raise as much as HK$9.14 billion (US$1.2 billion) through a Hong Kong stock offering, joining a wave of mainland companies tapping into strong investor sentiment in the electric vehicle (EV) sector.

The company last week started a bookbuild to sell 297.4 million shares in a price range of HK$27.75 to HK$30.75 each, according to its regulatory filings.

The deal was to have been the largest IPO in Hong Kong this year, but was eclipsed when Zijin Gold International launched its deal last week to raise $3.2 billion.

Chery, best known for its Chery, Jetour and iCAR brands, is seeking to tap investor appetite as it expands in the competitive electric and smart vehicle market.

Chery, which assembles Jaguars and Land Rovers in China, said it plans to plow the proceeds toward research and development, overseas expansion and factory upgrades.