Lixiang Automotive, a China-based smart electric vehicle (EV) producer backed by corporates Shougang, ByteDance, InTime, Taiping, Ping An and Leo Group, has filed for an initial public offering, Reuters reported today.
The company has not publicly filed but aims to raise at least $500m in the IPO, which is set to take place in the US, two people with direct knowledge of the matter told Reuters.
Founded as Chehejia and also known as CHJ Automotive, Lixiang launched its first vehicle, a hybrid sports utility vehicle called Lixiang One, in November 2019.
However, the company may encounter slowing sales due to declining government subsidies for EV purchases. Another Chinese smart EV developer, Nio, floated in the US in a $1bn IPO in September 2018 but its share price has since fallen about 40%.
Lixiang has reportedly raised about $1.45bn in funding, pulling in $530m in an August 2019 series C round led by private investor Wang Xing, who provided $300m, and backed by digital media company ByteDance, which invested $30m, and Lixiang founder and chief executive Li Xiang.
Steel provider Shougang co-led Lixiang’s $475m series B round in early 2018 with Matrix Partners China through its Shougang Fund, investing with department store operator InTime, Source Code Capital, BlueRun Ventures, Minshi Hexun Capital and Fancheng Capital.
The company reportedly received $151m from investors including insurers China Taiping and Ping An in 2017, following a $120m series A round the previous year that was led by Leo Group and which included Source Code Capital, Plum Ventures and a fund run by Changzhou Province.
Photo courtesy of Lixiang Automotive.
