China’s WM Motor files for Hong Kong IPO

Shanghai (Gasgoo)-WM Motor Holdings Limited (“WM Motor”), one of the major Chinese EV startups, has submitted the application documents for its potential initial public offering ("IPO") and listing on the Hong Kong Stock Exchange.

Haitong International Capital Limited, CMB International Capital Limited, and BOCI Asia Limited served as joint sponsors for the IPO.

Photo credit: WM Motor

According to the IPO draft prospectus, WM Motor had cumulatively sold 83,485 EVs since the launch of its first model in Sept. 2018. Its annual EV sales volume increased year by year, from 12,799 units in 2019 to 21,937 units in 2020, and 44,152 units in 2021.

The startup said its annual revenue surged 51.6% from a year earlier to 2,671.7 million yuan ($399.967 million) in 2020 and further by 77.5% from 2020 to 4,742.5 million yuan ($709.976 million) in 2021. Its yearly gross loss margin decreased from 58.3% in 2019 to 43.5% in 2020 and 41.1% in 2021.

As for product portfolio, WM Motor started with SUVs, including the EX5, the EX6, and the W6, and has also developed sedans such as the E.5 and the M7. The company said the W6 is the first and only mass-produced EV model in the world with L4 autonomous driving capability through the automated valet parking (“AVP”) at a designed parking space (which can be at home or at work), or “home” AVP function. Besides, the M7 is expected to offer the startup’s in-house developed L4 AVP in 2023.

In addition, WM Motor expects to launch one new EV model each year over the next few years, including new models of SUVs, sedans, and MPVs riding on Caesar—its next-generation chassis platform—beginning in 2023.