Chinese EV startup WM Motor files IPO in Hong Kong

Chinese electric car maker WM Motor plans an initial public offering in Hong Kong, considering raising about $1 billion.

In a filing to the Hong Kong bourse on Wednesday, the Shanghai-based company said that it plans to use the proceeds from an offering to fund research and development of next-generation EVs, expand its sales-and-services network, and repay loans, among other things. 

The share sale could be launched before the end of the year. Deliberations are ongoing and details including size and timeline are subject to change.

WM Motor’s offering will be a comfort for the Hong Kong Stock Exchange. This year, due to soaring inflation and central banks tightening monetary policy, IPOs have slowed down globally, and Hong Kong is no exception.

In 2021, WM Motor delivered 44,100 vehicles, a year-on-year increase of 96.3%. But that number pales in comparison to China’s top three EV makers. Xiaopeng delivered 98,200 vehicles, NIO delivered 91,000 vehicles, and Li Auto delivered 90,500 vehicles.

According to the company’s filling, its revenue rose almost 78% to 4.74 billion yuan in 2021, while its loss expanded to 8.20 billion yuan from 5.08 billion yuan a year earlier.

Haitong International Capital Ltd., CMB International Capital Ltd. and BOCI Asia Ltd. are acting as joint sponsors in the offering.