Zhida, a Chinese maker of EV charging systems, is weighing US$128 million Hong Kong IPO this year, source says

Shanghai Zhida Technology Development, a maker of electric-vehicle charging systems, is considering an initial public offering (IPO) in Hong Kong that could raise about HK$1 billion (US$128 million), according to a person with knowledge of the matter.

The Chinese company is working with Shenwan Hongyuan Group on a first-time share sale that could take place as early as this year, the person said, asking not to be identified as the information is private.

Zhida could file its preliminary prospectus as soon as this week, said the person. Deliberations are ongoing and details of the IPO including size could change, the person said.

A representative for Zhida did not respond to requests for comment. Shenwan Hongyuan also did not respond to messages.

Founded in 2010, Zhida makes at-home charging systems, portable battery kits, as well as charging robots, according to its website, which says it serves more than 1 million car owners and 70 car brands across China.

China is the world’s biggest market for EVs and smart vehicles. Last year, Shenzhen-based BYD overtook Volkswagen as the bestselling car brand in the country. It also overtook Tesla as the world’s biggest EV seller.

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China’s new-energy vehicle sales got off to a sluggish start this year, hampered by weak consumer sentiment and sluggish economy. The country’s Passenger Car Association has forecast new energy vehicle sales will rise 25 per cent in 2024, slowing from 36 per cent growth in 2023 and 96 per cent in 2022. Demand has also been affected by reports of range anxiety and long waiting times at chargers.

Others in the EV industry are exploring similar listings, including Jiangsu-based Star Charge. The charging equipment provider is considering an IPO in Hong Kong that could raise about US$500 million, Bloomberg News has reported.