Neta started preparations for its IPO in Hong Kong in the fourth quarter of 2023, with the amount of cornerstone investments signed up so far exceeding RMB 2 billion, according to local media.
(Image credit: CnEVPost)
Neta Auto kicked off preparations for its initial public offering (IPO) in Hong Kong in the fourth quarter of 2023, with the amount of cornerstone investments signed up so far exceeding RMB 2 billion ($280 million), local automotive media outlet D1EV said today, citing people close to the company.
Neta’s parent company is Hozon New Energy Automobile, founded in 2014, which launched the Neta brand in 2018.
Neta has completed at least 10 rounds of financing, with a total publicly disclosed funding amount of more than RMB 20 billion, the report noted.
Beijing News later cited Neta’s response as saying that it has no more information to provide at this time and will communicate new information as it becomes available.
Neta was founded in October 2014, and in April 2017, it received a vehicle production qualification approved by China’s economic planner, the National Development and Reform Commission. In November 2018, Neta’s first model, the N01, was launched.
In September 2017, Neta secured RMB 2 billion in angel round financing and RMB 1.25 billion in Series A financing in December of the same year.
Between April 2019 and July 2022, Neta secured Series B to Series D financing totaling billions of RMB.
On August 29, 2023, Neta said it completed a Crossover round of financing in the amount of RMB 7 billion.
Crossover rounds are different from the common Series A, B, and C rounds, which are usually the final financing before a company goes public.
Neta’s current models on sale include the Neta Aya, Neta X, Neta S, and Neta GT, with the Neta S being its flagship sedan and the Neta GT being an electric sports car.
The company delivered 127,496 vehicles in 2023, down 16 percent from a year earlier.
Neta CEO Yong Zhang said on January 2 that the company’s poor performance in 2023 was mainly due to reasons including a chaotic product switching pace, overpricing of new models at launch and soft marketing efforts.
Notably, rumors on Chinese social media recently suggested that Neta would delay its year-end bonuses, sparking concerns about the company’s situation.
On February 24, Zhang said in a Weibo post that the 2023 annual performance payout amount was being finalized and would be paid out in March.
($1 = RMB 7.1983)
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