Chinese electric vehicle start-up Hozon New Energy Automobile is seeking to raise about US$500 million (HK$3.9 billion) before a potential listing in Hong Kong this year.
Backed by billionaire Zhou Hongyi’s cybersecurity firm 360 Security Technology, Hozon offers three electric vehicle models under the Nezha brand, including a sport utility vehicle, its website shows.
The company is betting on rising demand for electric cars in more rural areas, offering vehicles with a starting price of under US$10,000 – less than a third of what Tesla’s most affordable sedan costs in China.
Hozon is working with advisers on the fundraising, Bloomberg reported, citing sources. The current round would value the Zhejiang-based firm at around 45 billion yuan (HK$55.36 billion), and the company could seek to launch its initial public offering as soon as the second half of this year.The Standard Channel
In other IPO news, GOGOX, an operator of transportation platforms, is set to conduct the listing hearing for the proposed Hong Kong IPO with the bourse within this week.
Also, Chinese fashion retailer Shein is reviving plans to list in New York this year and its founder is considering a citizenship change to bypass proposed tougher rules for offshore IPOs in China. The firm, founded by Chinese entrepreneur Chris Xu in 2008, first started preparing for a US IPO about two years ago, but shelved the plan partly due to unpredictable markets amid rising US-China tensions, Reuters said.
Meanwhile, the Asia Securities Industry and Financial Markets Association is raising concerns to Chinese authorities about a plan to tighten rules on overseas stock listings, saying the draft rules are ambiguous and will expand Beijing’s regulatory reach outside the nation’s borders, Bloomberg reported.
The proposals will also drive up costs and stymie deal making, the top lobby group for financial firms in Hong Kong said in a letter to the China Securities Regulatory Commission.