Hozon plans to raise US$1 billion in Hong Kong IPO, the latest Chinese EV start-up to bet on city’s role in funding their growth

Hozon’s biggest shareholder is the investment arm of Yichun, a city in Jiangxi province

Hozon sells three EV models under the Nezha brand, with a starting price of under US$10,000, less than a third of Tesla’s cheapest sedan in China

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A Nezha U-Pro all-electric sports utility vehicle, made by Hozon Auto. Photo: Handout

Published: 12:26pm, 12 Nov 2021Updated: 7:36pm, 14 Nov 2021

Chinese electric vehicle start-up Hozon New Energy Automobile is weighing a Hong Kong initial public offering (IPO) that could raise about US$1 billion, according to people familiar with the matter, part of a wave of electric carmakers considering listings in the Asian financial hub.

Hozon is working with advisers on the potential first-time share sale which could happen as soon as next year, the people said, asking not to be identified as the information isn’t public. A representative for Hozon couldn’t immediately respond to requests for comment.

Separately, WM Motor Technology is also targeting a Hong Kong IPO that could raise about US$1 billion and come as soon as next year, a person familiar with the matter said.

IFR earlier reported WM Motor’s Hong Kong IPO plans. A representative for the Shanghai-based company declined to comment.

Details such as fundraising size and timing are preliminary and could still change, and the companies could decide not to proceed with their listing plans, the people said.

Hozon and WM would add to the growing ranks of electric vehicle companies seeking first-time share sales in Hong Kong next year. Sequoia Capital China-backed Leapmotor is working with banks on a potential US$1 billion IPO in the city as soon as next year, Bloomberg News has reported.