Hozon Auto IPO

Summary*

Hozon Auto, a Chinese electric vehicle (EV) manufacturer founded in 2014, has reportedly taken steps towards a potential initial public offering (IPO) in Hong Kong. The company, which specializes in developing and producing electric cars under the Neta brand, has appointed China International Capital Corporation (CICC) and Morgan Stanley to work on the offering, according to sources familiar with the matter.

While the exact size of the potential IPO has not been finalized, reports suggest it could raise up to $1 billion. Hozon Auto is still in the early stages of preparation and is working on its initial filing documents for the Hong Kong Stock Exchange. The timeline for the listing remains uncertain, and additional banks may be added to the syndicate as the deal progresses.

The company's move towards an IPO comes on the heels of a recent 7 billion yuan pre-IPO fundraising round announced in late August. Hozon Auto has been expanding its presence in the competitive EV market, with plans to start selling its Neta-branded vehicles in Indonesia from the fourth quarter of 2023. The company exported 6,970 cars in the first half of this year and has been targeting Southeast Asian markets including Thailand, Myanmar, and Nepal.

With two factories in China boasting a total production capacity of 150,000 units per year, Hozon Auto is also constructing its first overseas plant in Thailand, scheduled to begin production in January 2024. This expansion aligns with the company's growth strategy and could potentially enhance its appeal to investors.

As the global EV market continues to evolve, Hozon Auto's potential IPO reflects the ongoing interest in the sector. However, the success of the offering will likely depend on various factors, including market conditions, investor appetite for EV stocks, and the company's financial performance in the coming months.

How to invest in Hozon Auto

While Hozon Auto's IPO prospects remain uncertain, investors eager to gain exposure to the electric vehicle market don't have to wait. At Linqto, we offer members access to interests in pre-IPO private companies, including potential leaders in the EV and automotive technology sectors. Our platform allows you to diversify your portfolio with lower minimum investments in emerging industry innovators, potentially benefiting from their growth before they go public.

Sources

*These comments should not be interpreted to mean that the company is formally pursuing or foregoing an IPO. The information provided above is based on current online discussions and is not intended as investment advice. Linqto does not endorse or guarantee the accuracy of this information, and we strongly recommend conducting your own research or consulting with a professional advisor before making any investment decisions. Linqto cannot be held liable for any investment outcomes resulting from the use of this information.