Chinese startup seeks around $500M in pre-IPO

Hozon New Energy Automobile Co., a Chinese electric car company, is aiming to fund $500 million before a possible Hong Kong IPO later this year.

The firm is being valued at around 45 billion yuan ($7.1 billion) by financing experts.

The firm is backed by billionaire Zhou’s 360 security technology

As early as the second half of this year, Hozon may try to undertake an initial public offering. According to Bloomberg News, the firm is eyeing a $1 billion initial public offering in Hong Kong.

Tianqi Lithium Corp., a Chinese provider of the primary ingredient used in batteries, has selected banks for a Hong Kong initial public offering (IPO) that may take place as early as mid-2022.

Hozon is offering three Nezha-branded electric vehicles, including an SUV, sponsored by billionaire Zhou’s cybersecurity firm 360 Security Technology.

Hozon is betting on the growing demand for electric vehicles in rural areas, providing cars for less than $10,000, fewer than a third of the cost of Tesla Inc.’s most accessible sedans in China.