Chinese electric vehicle startup Lixiang Automotive has quietly filed for an initial public offering (IPO) in New York, seeking to raise at least $500 million, Reuters reported Friday, citing two sources with direct knowledge of the matter.
China’s loss-making electric vehicle startups are desperate for fresh capital to finance their growth and are facing sluggish demand for electric cars caused by cuts to government subsidies.
The sources told Reuters that the IPO will take place as early as the first half of 2020 and that the company has selected Goldman Sachs as its lead underwriter. Plans were made in the summer of 2019.
If the IPO proceeds, Lixiang, formerly known as CHJ Automotive, would become China’s second electric car startup to list in New York after Nio’s $1 billion IPO in 2018.
In December, Lixiang started deliveries of its 2020 range-extended electric sport utility vehicle Ideal One, which is priced from 328,000 yuan after subsidies.
In August, the automaker grew its valuation to $2.9 billion after its $530 million series C funding led by Meituan Dianping CEO Wang Xin.
Contact reporter Ding Yi (email@example.com)