The Shanghai-based firm is in talks with underwriters ahead of a potential $300 million IPO.
According to sources familiar with the situation, Aichi Automobile Co., a Chinese electric car startup best known as Aiways, is considering a public offering in the United States, which could happen as soon as this year.
The Shanghai-based firm is in talks with underwriters ahead of a potential $300 million IPO, according to the sources, who requested not to be mentioned because they were sharing private information.
A spokesperson for Aiways refused to respond.
The company, which has its Headquarters based in Munich, was pursuing money from investors such as Didi Worldwide Inc., the ride-hailing behemoth, to support its global development in a deal that might have valued Aiways at over $2 billion.
The company, which was established in 2017 by Chinese businessmen Samuel Fu and Gary Gu, has an industrial base in Shangrao, China, with a manufacturing capacity of 150,000 automobiles per year. According to the carmaker web, the Aiways U5 midsize crossover, which is exclusively available in Germany, takes 35 minutes to charge from 20% to 80% and can drive over 400 kilometers (250 miles) on a single charge.
Aiways announced this week that it will provide at least 500 Aiways vehicles to Finn.auto, a car-subscription service. The Aiways U6 will be accessible in European markets in 2022, according to the business, and order books are available in Germany, the Netherlands, Belgium, Denmark, France, and Israel.
Electric car adoption is likely to grow dramatically in the next years, with profits expected to increase to 14 million in 2025 from 3.1 million in 2020. This would represent 16% of worldwide passenger car sales in 2025, while electric vehicle sales are anticipated to be greater in Germany and China, at nearly 40% and 25%, respectively.
Some electric-vehicle manufacturers, such as Faraday Future Smart Electric Inc., Canoo Inc., and Fisker Inc., have chased U.S. listings via mergers with blank-check businesses, but many stocks have fallen from their levels.