China Grand Automotive, a TPG Capital portfolio company, could raise about $1 billion through an initial public offering of its shares, a source has confirmed, although it is not clear on which exchange the company will list its shares and when the IPO will take place.
TPG is planning to exit its investment through the IPO, Reuters reported, and it has hired China International Capital Corp (CICC) and Goldman Sachs as lead managers for the IPO, the source confirmed.
The firm owns a stake of about 40 percent in China Grand Automotive and made its first investment in the company in 2007, according to the wire.
CICC was unavailable for comment. Goldman Sachs did not respond to a request for comment and TPG declined to comment.
TPG has been actively divesting stakes in its portfolio companies in recent months.In March 2010, the firm sold its 24 percent stake in Singapore-listed Parkway Holdings to Indian healthcare provider Fortis for $685.3 million.
Prior to that, the firm made an estimated A$1.3 billion (€826.3million; $1.2 billion)when Australian portfolio company Myer Group, owner of a chain of department stores, listed on the Australian Securities Exchnage in October 2009.