Chinese electric vehicle (EV) startup Hozon New Energy Automobile Co. is weighing a Hong Kong initial public offering (IPO) that could raise about $1 billion, Bloomberg reported Friday, citing individuals familiar with the matter.
Hozon Auto, which operates an EV brand named NETA Auto, is working with advisors on the potential first-time share sale, which could happen as soon as next year, the sources said.
According to data previously released by Hozon Auto, its delivery volume in October was 8,107 units, up 294% year-on-year, including 5,000 units of the NETA U Pro. The total delivery volume of Hozon Auto from January to October was 49,534 units, a year-on-year increase of 398%.
Hozon Auto has attracted many partners recently. On October 27, the firm finished its D1 round of financing worth 4 billion yuan ($626 million), led by Qihoo 360 Technology. The EV maker also launched a new model called the NETA V Pro, equipped with Qihoo 360’s security technology, on November 4.
On November 8, Hozon Auto announced that it had signed a strategic agreement with leading Chinese battery maker CATL, which will also participate in the EV maker’s D2 round of financing. On Wednesday, Hozon Auto signed another strategic cooperation agreement with Public Company Limited (PTT). In the future, both parties will jointly expand their business in Thailand.