UPDATE 1-TPG launches $1 bln IPO of China Grand Auto -sources

* TPG to float China Grand Automotive business -sources

* Names CICC and Goldman Sachs as lead managers -sources

* The IPO could raise about $1 bln -sources
(Adds details, background)

By Denny Thomas

HONG KONG, April 15 (BestGrowthStock) – Private equity firm TPG
[TPG.UL] is planning to exit China Grand Automotive Services Co
Ltd through a stock listing, and has hired China International
Capital Corp (CICC) and Goldman Sachs (GS.N: ) as lead managers,
people familiar with the process told Reuters.

The size and timing of the offer is still uncertain, but some
bankers estimate the initial public offering (IPO) could raise
about $1 billion.

TPG and Goldman Sachs declined comment, and CICC officials
were not available for immediate comment.

TPG’s planned exit comes as equity markets in the region are
showing signs of stability. TPG owns about a 40 percent stake in
China Grand Automotive and made its first investment in the
company in 2007, one person said.

It was not clear whether TPG would make a full exit or where
it would list the business.

China Grand Auto is China’s largest auto dealership network,
selling new cars and providing after-sale service.

Last month, Zhongsheng Group, a Chinese dealership providing
services to car makers, halved its Hong Kong IPO to $474 million
due to a lukewarm response to the offer.

Zhongsheng offered shares at 14.2 times to 19 times 2010
forecast earnings. By comparison, Hong Kong-based distributor Dah
Chong Hong Holdings (1828.HK: ) trades at about 12 times 2010
forecast earnings. Zhongsheng’s founders and private equity firm
General Atlantic did not sell any existing shares in the IPO.

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(Editing by Ken Wills)

UPDATE 1-TPG launches $1 bln IPO of China Grand Auto -sources