Hozon, which owns Neta brand, reportedly seeks pre-IPO financing at $7 billion valuation

Hozon is seeking to raise about $500 million ahead of a potential Hong Kong IPO this year, valuing it at RMB 450 ($7.1 billion), Bloomberg reports.

Hozon, which owns Neta brand, reportedly seeks pre-IPO financing at $7 billion valuation-CnEVPost

(Image credit: Neta)

Hozon New Energy Automobile, which owns the Neta brand, is seeking to raise about $500 million ahead of a potential Hong Kong IPO this year, valuing it at RMB 450 ($7.1 billion), Bloomberg reported today, citing people familiar with the matter.

Hozon is working with advisers on the financing and may seek to launch its Hong Kong initial public offering as early as the second half of this year, the report said.

Hozon was founded in October 2014 and owns Neta Automobile, an electric vehicle brand. The first Neta model was launched in November 2018.

Neta currently offers three models in China, the Neta V, Neta V Pro and Neta U Pro, all starting at under RMB 100,000 (USD15,700).

At the end of October last year, Neta announced the completion of an RMB 4 billion Series D1 round of financing led by Qihoo 360, China's largest cybersecurity company, with an RMB 2 billion investment.

Qihoo 360 participated in two consecutive rounds of financing for Neta, with a cumulative investment of RMB 2.9 billion, Neta said at the time, adding that its next round of financing had been initiated and would close soon.

On November 12, Bloomberg reported that Hozon was considering an IPO in Hong Kong that could raise about $1 billion.

Hozon was working with advisers on the matter, and the IPO could happen as early as 2022, the report said.

The company previously considered listing on the Nasdaq-style STAR board in Shanghai, but then Chinese regulators increased scrutiny of potential post-IPO options for high-tech components, causing a large number of companies to abandon the plan, the report said.

Neta delivered 10,127 vehicles in December, its second consecutive month of more than 10,000 units and a 236 percent increase from a year earlier, according to data it released earlier this month.

Its total deliveries in 2021 reached 69,674 units, up 362 percent from a year ago. Neta's total deliveries for all models were 95,977 units as of December 31.

On January 8, Neta said it saw its 100,000th production vehicle roll off the line, 3.5 years after its first production vehicle rolled off the line.

Phate Zhang/CnEVPost: Phate is the founder and main author of CnEVPost. He has been reporting since 2009, mainly on macroeconomics and capital markets. Contact via: phate@cnevpost.com.
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