China’s Zhida Weighing HK$1 Billion Hong Kong IPO This Year, Sources Say

Pei Li, Bloomberg News

The corporate flag for Hong Kong Exchanges & Clearing Ltd. (HKEX), right, and the Chinese flag, left, fly outside the Exchange Square complex in Hong Kong, China, on Monday, Sept. 16, 2019. The Hong Kong bourse's unsolicited takeover bid for the London Stock Exchange Group Plc was greeted with a scathing rejection and the exchange suffered a further humiliation when China praised the rebuff as well. Photographer: Paul Yeung/Bloomberg , Bloomberg

(Bloomberg) -- Shanghai Zhida Technology Development Co., a maker of electric-vehicle charging systems, is considering an initial public offering in Hong Kong that could raise about HK$1 billion ($128 million), according to a person with knowledge of the matter.

The Chinese company is working with Shenwan Hongyuan Group Co. on a first-time share sale that could take place as early as this year, the person said, asking not to be identified as the information is private.

Zhida could file its preliminary prospectus as soon as this week, said the person. Deliberations are ongoing and details of the IPO including size could change, the person said.

A representative for Zhida didn’t respond to requests for comment. Shenwan Hongyuan also didn’t respond to messages.

Founded in 2010, Zhida makes at-home charging systems, portable battery kits, as well as charging robots, according to its website, which says it serves more than 1 million car owners and 70 car brands across China.

China is the world’s biggest market for EVs and smart vehicles. Last year, Shenzhen-based BYD Co. overtook Volkswagen AG as the best-selling car brand in the country. It also overtook Tesla Inc. as the world’s biggest EV seller.

China’s new-energy vehicle sales got off to a sluggish start this year, hampered by weak consumer sentiment and sluggish economy. The country’s Passenger Car Association has forecast new energy vehicle sales will rise 25% in 2024, slowing from 36% growth in 2023 and 96% in 2022. Demand has also been affected by reports of range anxiety and long waiting times at chargers.

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Others in the EV industry are exploring similar listings, including Jiangsu-based Star Charge. The charging equipment provider is considering an IPO in Hong Kong that could raise about $500 million, Bloomberg News has reported.