Guangzhou Auto eyes $1 bln dual listing -paper

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HONG KONG, Feb 11 (Reuters) - Guangzhou Automotive Industry, parent of Hong Kong-listed Denway Motors (0203.HK: Quote, Profile, Research, Stock Buzz), is eyeing a dual listing in China and Hong Kong to raise a combined $1 billion, the South China Morning Post reported on Monday.

Guangzhou Automotive, a joint venture partner of Honda Motor Co (7267.T: Quote, Profile, Research, Stock Buzz) and Toyota Motor (7203.T: Quote, Profile, Research, Stock Buzz), aimed to launch an initial public offering of A shares on the mainland in the first half of 2008, the newspaper quoted a senior company source as saying.

Capital raised would be used to create a car financing arm, but the size of the issue had not been determined.

Other sources said the company planned an A-share offering followed by an H-share listing, the newspaper said.

"The company plans to complete its H-share listing by the second quarter of this year," the other sources said.

The newspaper said the Chinese auto maker had already submitted applications to the China Securities Regulatory Commission. It gave no further listing details. (US$1=HK$7.8) (Reporting by Donny Kwok; Editing by Anne Marie Roantree)