By issuing a total of 286,160,000 shares at a price of HK$10.0 per share, the company raised a net amount of HK$2,679 million after the deduction of related underwriting commissions and expenses, according to a statement it filed last week with the Hong Kong stock exchange.

The IPO proceeds will be used primarily for expansion of the group's distribution network of franchised dealerships, through organic growth and selective acquisitions, alliances, joint ventures and other strategic investments, the company said in the statement. 

As of 31 December 2009, Zhongsheng Group owned 47 dealerships, mainly located in the northeastern, eastern and southern coastal regions of China. 

The group has a diversified brand portfolio comprising the luxury brands of Mercedes-Benz, Lexus and Audi, and the mid-to-high end brands of Toyota, Nissan, Honda and Buick.

In addition to Zhongsheng, at least two other dealership groups, namely China Grand Automative Service and Pangda Automobile Trading Group, are currently actively seeking to list on domestic as well as international stock markets, according to sources close to the situation.