Chinese EV Maker Hozon Auto Employs Morgan Stanley to Drive IPO Amounting to $1 Billion

According to sources with direct knowledge of the matter, Chinese electric vehicle (EV) manufacturer Hozon Auto has hired China International Capital Corporation (CICC) and Morgan Stanley to work on a Hong Kong initial public offering (IPO) that could raise up to $1 billion.

Hozon's IPO plans come after the company announced a 7 billion yuan pre-IPO fundraising round in a social media statement late on August 29.

As per the sources, the size of the offering has not yet been finalised because the company is still in early preparations and is working on its initial filing documents to be filed with the Hong Kong Stock Exchange.

There is no firm timeline in place for a listing, they added, declining to be identified because the information is confidential. As the deal progresses, more banks may be added to the syndicate working on the IPO, they said.

CICC and Hozon declined to comment, and Morgan Stanley did not respond immediately to an inquiry. Earlier this week, local Hong Kong media reported that Hozon could raise up to $1 billion in a local listing.

Hozon, which is named after a famous young character in ancient Chinese mythology, announced in August that it would begin selling Neta-branded EVs in Indonesia in the fourth quarter of 2023.

The company has been selling its Neta EVs to Southeast Asian countries such as Thailand, Myanmar, and Nepal, having exported 6,970 cars in the first half of this year.

It was founded in 2014 and now has two factories in China with a combined annual capacity of 150,000 units. Hozon is constructing its first overseas plant in Thailand, with plans to begin production there in January 2024.