Sources: Chinese electric vehicle maker Hozon prepares $1 billion IPO

Chinese electric vehicle manufacturer Hozon Auto has hired China International Capital Corp. (CICC) and Morgan Stanley for the preparation of the initial public offering (IPO) that it will launch on the Hong Kong Stock Exchange, a transaction that could raise up to one billion dollars, according to sources cited by Reuters.

Hozon's plan comes after the company last week announced a pre-IPO fundraising of 7 billion yuan.

The size of the initial public offering has not yet been determined, the sources said, adding that the company is still in early preparations and working on documents to file with the Hong Kong Stock Exchange.

The sources also say that no firm timetable has been set for the listing and it is possible that more banks will be added to the syndicate working on the IPO as the deal progresses.

CICC, Hozon and Morgan Stanley refused to comment on the information published by Reuters.

Hong Kong media recently reported that Hozon could raise up to $1 billion from the local listing.

• Hozon exported 6,970 cars in the first half of 2023

Hozon announced in August that it plans to start selling its Neta-branded electric vehicles in Indonesia starting in the fourth quarter of 2023.

The company, which exported 6,970 cars in the first half of this year, has sold its Neta electric vehicles in Southeast Asian countries, including Thailand, Myanmar and Nepal.

Founded in 2014, the company now has two factories in China with a total capacity of 150,000 units per year.

Hozon is building its first cross-border factory in Thailand and aims to start production there in January 2024.