Hyundai Motor Co. is set to hire banks including Citigroup Inc. and JPMorgan Chase & Co. for an initial public offering of its Indian unit that may raise about $2.5 billion, people familiar with the matter said, and rank among the country’s biggest listings ever.
India’s second-largest carmaker also is in talks with other banks as it pulls together a roster of advisers for the offer that may come this year, the people said, asking not to be identified as the matter is private.
Representatives of JPMorgan and Citi declined to comment. Hyundai India didn’t immediately respond to an emailed request for comment sent outside of normal business hours.
The lineup may still change, people said. There’s no final decision on the timing of the sale or the number of shares the South Korean parent will sell, and the offering could yet be delayed, they said.
If the South Korean company does proceed with an IPO, it will use the cash raised to expand operations, Bloomberg News reported this week. India accounted for 13% of Hyundai’s global sales last year. About $27 billion was raised in IPOs and follow-on share sales in India last year, exceeding Hong Kong for the first time in at least three decades, according to data compiled by Bloomberg.
Reuters reported the naming of the banks earlier Friday.
