What’s new: Chinese electric-vehicle (EV) maker Hozon New Energy Automobile Co. Ltd. has filed for an IPO in Hong Kong as it seeks new financing to support its global expansion.
The Shanghai-based carmaker plans to use part of the proceeds to expand into overseas markets to enhance the global presence of its EV brand Neta Auto, according to a filing with the Hong Kong Stock Exchange on Wednesday.
Hozon will also put proceeds toward improving its smart car hardware and software technologies, expanding its sales, service and charging infrastructure network in China, and expanding its product portfolio, among other things.
The filing did not disclose the size or timetable for the offering.
The background: In April, Hozon signed a deal with three government-backed Chinese firms, which jointly invested at least 5 billion yuan ($688 million) in the automaker to help it go public as soon as possible.
Hozon’s plan to tap the capital markets comes as Chinese EV-makers are increasingly looking overseas for new growth amid a price war and slowing demand at home.
Neta Auto entered the Thai market in August 2022 with the budget Neta V electric subcompact crossover assembled in China, marking its first attempt at overseas expansion. Neta Auto has since expanded to other Southeast Asian countries as well as markets in Latin America, the Middle East and Africa, according to the filing.
Neta Auto has invested in manufacturing facilities overseas to support its expansion. Its plants in Thailand and Indonesia have begun mass production this year and it plans to start production at a plant in Malaysia in early 2025, according to the company’s statements.
Contact reporter Wang Xintong (xintongwang@caixin.com) and editor Jonathan Breen (jonathanbreen@caixin.com)
