Chinese electric vehicle (EV) maker Hozon New Energy Automobile has roped in the Hong Kong government as its cornerstone investor in a funding round ahead of a reported initial public offering (IPO) in the city.
The Hong Kong government will invest $200 million into the Chinese EV maker besides providing a HK$200 million ($25.6 million) subsidy, according to a release published by Hozon on Wednesday.
The investment announcement comes as the EV firm eyes setting up an R&D and big data centre in the city to research and develop new energy vehicles targeting overseas consumers as part of the Hong Kong government’s programme to attract strategic firms to accelerate local innovation and technology development.
Hozon is part of the second batch of 19 companies that joined the Office for Attracting Strategic Enterprises (OASES) partnership signing ceremony on Wednesday. The Hong Kong government set up OASES to scout for companies from industries of strategic importance to the city including life and health technology, artificial intelligence and data science, financial technology, advanced manufacturing, and new-energy technology.
The strategic enterprises are expected to invest more than HK$40 billion ($5.1 billion) in Hong Kong, and create over 13,000 jobs, with the majority in scientific research and management positions.
The news comes six months after the EV maker tapped China International Capital Corporation (CICC) and Morgan Stanley to work on a Hong Kong IPO that could reportedly raise up to $1 billion, Reuters reported in September 2023. Prior to that, the firm sealed its 7 billion yuan ($960.2 million) cross-over financing round in August 2023.
