Chinese electric vehicle (EV) maker Hozon, which produces vehicles under the brand name Neta, has filed to go public through an initial public offering (IPO) in Hong Kong, according to a stock exchange filing on Wednesday.
The size of its fundraising has not been disclosed, but media reports suggest the company could raise up to $1 billion in its IPO on Hong Kong Exchanges and Clearing Limited (HKEX), which would make it one of the city’s biggest debuts this year.
The company last raised some 5 billion yuan ($688 million) in April from Chinese government-backed investment firms to gear up for its IPO plans.
Talks of a Hozon IPO have been brewing for quite some time. It raised a separate 7 billion yuan ($963 million) in August last year after denying speculation regarding plans for the Hong Kong listing.
Hozon is backed by Chinese battery giant CATL, Citic Securities, the electric vehicle unit of Beijing Automotive Group Chinese state-owned automobile manufacturer BAIC, and internet security services company Qihoo 360.
The company has appointed CICC, Morgan Stanley Asia, CLSA, ABC International, and China Merchants Bank International for the IPO process, according to the filing.
The Shanghai-headquartered EV maker is joining brands such as BYD, Great Wall Motor, Li Auto, and XPeng in listing on HKEX to potentially fund its expansion plans overseas.
A price war in the world’s biggest EV market is intensifying competition between a host of homegrown brands. With domestic sales slowing, China’s EV companies are looking to tap overseas markets for growth.
Founded in 2014, the EV maker has been on a mission to expand its footprint in Southeast Asia by starting its first overseas plant in Thailand, with factories in Indonesia and Malaysia to follow.
