(Bloomberg) -- Chinese electric vehicle startup Hozon New Energy Automobile Co. is seeking to raise about $500 million before a potential listing in Hong Kong this year, people with knowledge of the matter said.
Hozon is working with advisers on the fundraising, the people said, asking not to be identified as the information isn’t public. The current round would value the Zhejiang-based firm at around 45 billion yuan ($7.1 billion), they said.
The company could seek to launch its initial public offering as soon as the second half of this year, the people said. Bloomberg News reported in November that Hozon is considering a first-time share sale in Hong Kong that could raise about $1 billion.
Details of the fundraising such as size and timing are preliminary and could change, the people said. A representative for Hozon declined to comment.
The latest fundraising plan comes as investors look to tap into electric carmakers and related sectors as they heat up. Tianqi Lithium Corp., a Chinese supplier of the key material used in batteries, has selected banks for a share offering in Hong Kong that could take place as soon as mid-2022, Bloomberg News reported last week.
Backed by biliionaire 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 $10,000 -- less than a third of what Tesla Inc.’s most affordable sedan costs in China.
©2022 Bloomberg L.P.
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