Nexteer Automotive launches Hong Kong IPO

Nexteer Automotive, a Michigan-based steering and driveline supplier, has launched the management roadshow and institutional bookbuilding for its Hong Kong initial public offering, with the aim of raising between HK$1.83 billion and HK$2.52 billion $236 million to $325 million.

The company was part of Delphi and General Motors, before GM sold it to China-based Pacific Century Motors in 2010. Chinese state-owned parts manufacturer AVIC Automobile Industry Holding then bought a 51% stake in Pacific Century Motors. The company has chosen to list in Hong Kong because it wants to expand its business in China, according to a source.

The deal, which launched on Friday...