Changan Auto's EV Brand Avatr Submits Hong Kong IPO Application
Avatr Technology, a premium EV brand under Changan Automobile, has applied for an IPO on the Hong Kong Stock Exchange. The funds will be used for developing new NEV models, enhancing platforms, branding, and sales networks. Avatr, established in 2018, has seen rapid sales growth but also increased losses. Changan Auto holds a 41% stake, and Avatr collaborates with Huawei and CATL on EV models.
(Yicai) Nov. 28 -- Avatr Technology, the premium new energy vehicle brand under Chinese automaker Changan Automobile, has submitted an application with the Hong Kong Stock Exchange for an initial public offering.
The proceeds of the IPO will be mainly used to develop new NEV models, build a next-generation intelligent platform architecture, enhance branding and sales networks, and supplement working capital, according to the listing prospectus submitted by Avatr yesterday.
The IPO's underwriters will be Citic Securities and China International Capital Corporation, the firm noted, without revealing the amount of funds it plans to raise.
Established in 2018, Avatr began mass production and deliveries in December 2022. It delivered 20,021 units in 2023, 61,588 units last year, and 56,729 units in the first half of this year.
Thanks to the rapid growth in sales, Avatr's revenue doubled to CNY12.2 billion (USD1.7 billion) in the six months ended June 30 from a year earlier. However, its net loss widened 11 percent to CNY1.6 billion (USD226.1 million) in the period.
Between 2022 and 2024, Avatr racked in CNY9.7 billion in losses. Its revenue was CNY15.2 billion last year, an increase of 169 percent from 2023.
Behind Avatr's ongoing cash burn is the financial support from its shareholders. Since its establishment, the company has raised more than CNY19 billion in four financing rounds. The most recent one was a CNY11 billion Series C fundraiser in December last year, led by Changan Auto.
As of June 30, Changan Auto was Avatr's largest shareholder with a 41 percent stake. Battery giant Contemporary Amperex Technology was the second-largest with a 9.2 percent stake.
Avatr is partnering with Chinese tech giant Huawei Technologies and CATL to jointly develop premium intelligent electric vehicle models.
Although Huawei is not among Avatr's shareholders, the two companies still have a collaborative relationship at the equity level. In August last year, Avatr announced it would spend CNY11.5 billion to acquire a 10 percent stake in Yinwang Intelligent Technology, a developer of smart driving technology under Huawei.
Editor: Futura Costaglione
