Hozon’s Neta X hits Hong Kong market as IPO plans progress amid upbeat sentiment

Name: SCMP
Telephone: +852-2680-8888

Hozon has started delivering Neta X to buyers in Hong Kong on Sunday, priced from HK$229,800 (US$29,498)

Reading Time:2 minutes

Why you can trust SCMP

Hozon founder Fang Yunzhou standing next to a Neta X SUV in Sha Tin, Hong Kong on September 22. Photo: May Tse

Aileen Chuang

Published: 5:22pm, 22 Sep 2024Updated: 6:21pm, 22 Sep 2024

Corrected [6:20pm, 22 Sep, 2024]

[6:20pm, 22 Sep, 2024]
Corrects earnings history in ninth paragraph

Hozon New Energy Automobile said some aspects of its stock listing plan in Hong Kong are progressing faster than expected, aided by better market sentiment and the company’s urgency in selling more electric vehicles (EV) in overseas markets.

“A lot of capital and investors are becoming more optimistic about Hong Kong,” founder and chairman Fang Yunzhou said. “We hope to attract more investors to enjoy the investment dividends brought by the rapid growth of new energy vehicles and Neta’s overseas expansion.”

The Chinese maker of Neta budget EVs submitted its initial public offering (IPO) application in June, and the fundraising plan is “on schedule [with] some aspects progressing faster” than others, he said after an event to mark the official delivery of Neta X sport-utility vehicle (SUV) in Hong Kong on Sunday.

Hozon’s Neta X starts from HK$229,800 (US$29,498), after a government subsidy to encourage car owners to switch to zero-emission vehicles.

The Federal Reserve and the Hong Kong Monetary Authority cut their key interest rates by half a point this week, heralding the first easing measure in four years. The decision helped create a desirable market environment for IPO hopefuls, Fang said.

12:53

‘Overtaking on a bend’: how China’s EV industry charged ahead to dominate the global market

Hozon has not disclosed the size of its IPO. At a reported US$1 billion deal, the fundraising could shore up Hong Kong’s ranking among the world’s busiest IPO venue. The world’s biggest home appliances maker Midea Group raised US$4 billion IPO on Tuesday, the biggest in the city since 2021.