(Bloomberg) -- China's Hozon Auto is seeking financing on the way to a planned initial public offering, betting on rising demand in rural areas for its electric cars that start at less than $10,000.
The company wants to raise 3 billion yuan ($427 million) in Series C financing, it said in a statement Friday. An IPO on Shanghai's STAR board is targeted for as early as 2021, the company said.
Chinese electric-vehicle makers are vying for a foothold in the once heavily subsidized industry, with several being squeezed out by a lack of funding this year alone. Zhejiang-based Hozon is banking on future growth potential for more affordable EVs, with its first model, an SUV, starting at 66,800 yuan.
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Deliveries of Hozon's second model started last month. In total, the company has shipped more than 16,000 vehicles, including about 5,000 cars in the first half of this year.
Founded in 2014, Hozon completed a Series B fundraising of 3 billion yuan in April 2019.
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With assistance from Bloomberg
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