WM Motor is eyeing a possible $1 billion Hong Kong IPO, which could happen as soon as next year, Bloomberg reports.
(Image credit: WM Motor)
Chinese electric car startup WM Motor is eyeing a possible $1 billion Hong Kong IPO, which could happen as soon as next year, Bloomberg reported today, citing people familiar with the matter.
The report did not provide more details.
WM Motor announced on October 4 that it expects to raise a total of $500 million in new funding in rounds D1 and D2.
The D1 round of more than $300 million was led by Hong Kong-based PCCW and Shun Tak Holdings, with participation from GF Xinde Investment Management's investment arm, according to the company.
After the completion of the D1 round, WM Motor will sign a D2 round of financing with other leading international investors, the company said.
Notably, PCCW and Shun Tak Holdings are funds owned by Li Ka-shing and the family of gambling king Stanley Ho.
After completing its D1 round of funding, WM Motor will lean toward an overseas listing, Zhang Ran, the company's partner and CFO, said in an October 15 interview with the Beijing News.
However, Zhang also said that the timeline and progress details of WM Motor's IPO are not available right now, but it is being pushed forward in an orderly manner.
The registered capital of WM Motor's operating entity, WM Motor Smart Travel Technology (Shanghai) Co, was reduced by 42.99 percent to 689 million yuan from 1.209 billion yuan on September 13, information from data provider Tianyancha showed.
Local media cls.cn reported on September 15 that WM Motor was making adjustments to its shareholding structure and will likely raise a new round of financing in the fourth quarter in preparation for an overseas listing.
WM Motor also previously planned to list on China's Nasdaq-style sci-tech innovation board, also known as the STAR market, and had made preparations in January. But there has been no progress since then.
In mid-April, Chinese media reported that WM Motor's listing process on the STAR market had been put on hold, possibly related to the increased requirements of the review board for the technology attributes of the candidate companies.
WM Motor's sales in October reached 5,025 units, up 67 percent year-on-year and essentially unchanged from 5,005 units in September.
On October 2, the company announced the highly anticipated M7, its first sedan, which will be delivered in volume in 2022.