KKR-backed Rundong Auto to launch up to $138 mln HK IPO

HONG KONG, July 30 Wed Jul 30, 2014 4:51am EDT

HONG KONG, July 30 (Reuters) - China's Rundong Automobile Group, backed by private equity firm KKR & Co LP, said it will launch an up to $138 million initial public offering in Hong Kong on Thursday, betting on continued demand for luxury vehicles in the world's second-largest economy.

The IPO will consist of 268.62 million shares in an indicative range of HK$3.58 to HK$3.98, the company said in a statement, valuing the at up to HK$1.07 billion ($138.1 million).

Bank of America Merrill Lynch and Morgan Stanley were hired as sponsors and joint global coordinators of the IPO, with CCB International and Haitong International also acting as joint bookrunners.

($1 = 7.74 Hong Kong dollars) (Reporting by Dancy Zhang; Writing by Elzio Barreto)