Xiaomi-backed ZongMu Technology aims to raise 2 billion yuan via IPO in Shanghai

Beijing (Gasgoo)- China’s autonomous driving company ZongMu Technology saw its IPO application officially received by the Shanghai Stock Exchange (SSE) on November 23, according to SSE. 

Photo credit: ZongMu Technology

ZongMu Technology intends to raise 2 billion yuan ($280.14 million) for the construction project of its Shanghai R&D center, and an intelligent driving system production base project (Phase I) in Dongyang city, as well as the working capital supplement.

Notably, the company was once temporarily listed on China’s National Equities Exchange and Quotations in 2017 for eleven months, then delisted due to business development strategies. CEO of the company, Tang Rui, disclosed last year in an interview that the company was eyeing for an IPO on the STAR Market in 2022. ZongMu Technology’s latest IPO attempt is expected to boost the confidence of the autonomous driving industry to a certain extent. 

According to the company’s prospectus, it has invested 560.6 million yuan ($78.52 million) as R&D expenses in the 2019-2021 period, which accounted for 155.31% of its corresponding revenue in the period. It has previously received investment from Xiaomi, Lenovo, Qualcomm Ventures, and others.