Sunwoda Electric Vehicle Battery Co., a subsidiary of Shenzhen-based Sunwoda Electronic Co., is reportedly considering an initial public offering (IPO) in Hong Kong instead of Shenzhen due to the lengthy approval process for listings on mainland exchanges. According to sources familiar with the matter, the EV battery maker is currently in discussions with advisors about the possibility of an IPO in the coming quarters. Last year, Sunwoda EVB had applied to list on Shenzhen’s ChiNext board, similar to Nasdaq, with Citic Securities Co. as sponsors. It also raised 1.65 billion yuan ($228 million) in a financing round, giving it a valuation of approximately 36 billion yuan. The company has not yet responded to requests for comment.
Sunwoda Electronic, the parent company, has experienced a modest increase of less than 1% in its shares this year, but they have declined by over 70% compared to their peak in 2021. The company, listed in Shenzhen, currently holds a market value of 27.5 billion yuan.
Sunwoda EVB, a subsidiary of Sunwoda Electronic, provides automotive manufacturers such as Dongfeng Motor Group Co. and Geely Automobile Holdings Ltd. with its services.