Sunwoda EV Battery Is Said to Explore Switching IPO to Hong Kong

June 7, 2024

32 1 minute read

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(Bloomberg) — Sunwoda Electric Vehicle Battery Co. is considering an initial public offering in Hong Kong instead of Shenzhen, according to people familiar with the matter, as Chinese companies grapple with slow approval processes for listings on mainland exchanges.

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The EV battery maker, a unit of Shenzhen-based Sunwoda Electronic Co., is talking with advisers about a possible IPO in the coming quarters, the people said, asking not to be identified discussing confidential information.

Sunwoda EVB had submitted an application to list on Shenzhen’s Nasdaq-like ChiNext board last year, with Citic Securities Co. as sponsors. It also raised 1.65 billion yuan ($228 million) in a financing round, giving it a valuation of about 36 billion yuan.

Deliberations are ongoing, the people said.

Sunwoda EVB didn’t respond to requests for comment.

Shares of the parent, Sunwoda Electronic, have risen less than 1% this year, and they’re down more than 70% from a 2021 peak. The company, which is listed in Shenzhen, has a market value of 27.5 billion yuan.

Sunwoda EVB supplies automakers including Dongfeng Motor Group Co. and Geely Automobile Holdings Ltd.

–With assistance from Danny Lee.