Sunwoda Electric Vehicle Battery Co., a unit of Sunwoda Electronic Co. based in Shenzhen, is reportedly considering an initial public offering (IPO) in Hong Kong instead of Shenzhen due to challenges faced by Chinese companies in getting approvals for listings on mainland exchanges.
Sources familiar with the matter revealed that the EV battery maker is in discussions with advisors regarding a potential IPO in the upcoming quarters. Last year, Sunwoda EVB had applied to list on Shenzhen’s ChiNext board, akin to Nasdaq, with Citic Securities Co. as sponsors. Additionally, the company had successfully raised 1.65 billion yuan ($228 million) in a financing round, resulting in a valuation of approximately 36 billion yuan.
The deliberations for the IPO are ongoing, as per the sources, who chose to remain anonymous while discussing confidential details. Sunwoda EVB has not provided any comments in response to requests for information.
Following these developments, shares of Sunwoda Electronic, the parent company, experienced a decline of up to 3.7% on Friday. The stock has plummeted over 70% from its peak in 2021, leading to a market value of around 27 billion yuan for the Shenzhen-listed firm.
Sunwoda EVB is known for supplying EV batteries to prominent automakers like Dongfeng Motor Group Co. and Geely Automobile Holdings Ltd.
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