Geely’s EV Truck Brand Farizon Seeks $300 Million Funding Round, Sources Say

Vinicy Chan, Bloomberg News

(Bloomberg) -- Farizon Auto, a brand owned by Zhejiang Geely Holding Group Co., is seeking to raise about $300 million in new capital, according to people with knowledge of the matter.

GLP Pte, the Singapore-based logistics and real estate giant, is set to be the lead investor in the clean-energy commercial vehicle maker’s debut funding round, said the people, who asked not to be identified as the information is private.

Citic Ltd.-backed CPE, South Korea’s Mirae Asset and GLy Capital Management -- a Hong Kong-based investment firm backed by Geely Group and SK Inc. -- are also considering joining the round, according to the people.

Deliberations are ongoing and details may change, the people said. A representative for Geely Holding said the company does not comment on internal business. A spokesperson for GLP declined to comment, a Mirae Asset representative couldn’t immediately comment and CPE and GLy Capital didn’t immediately respond to requests.

A global push toward decarbonization has drawn investment into the electric vehicle sector in recent years, growing beyond just cars. Rivian Automotive Inc., an electric truck maker, raised more than $13.7 billion in its US initial public offering last year.

Established in 2016, Farizon Auto makes commercial vehicles, urban buses and coaches, according to Geely Holding’s website. It launched a methanol-fueled heavy truck in 2019, and two years later debuted a new engine that cuts average annual fuel cost by 18% compared to diesel heavy trucks, Geely Holding’s 2021 sustainability report shows. Geely New Energy Commercial Vehicle Group, the division which includes Farizon, is considering an IPO in three to five years, its chief executive officer Mike Fan told Bloomberg News last year.