By Jiahui Huang

Chinese ride-hailing platform CaoCao is looking to raise as much as US$253.3 million via an initial public offering in Hong Kong, adding to the growing number of companies lining up to list in the financial hub.

The company, backed by Chinese carmaker Geely, said in a filing Tuesday that it plans to offer 44.2 million shares at HK$41.94 each.

CaoCao, which has a fleet of over 34,000 vehicles, estimated net proceeds at about 1.72 billion Hong Kong dollars to HK$1.99 billion, equivalent to US$219.1 million to US$253.5 million, depending on the exercising of overallotment options.

CaoCao plans to use the funds to improve services, grow its fleet and invest in autonomous driving, among other purposes.

Hong Kong's stock exchange is experiencing a surge in interest from Chinese companies eyeing listings. Recently, Chinese battery giant Contemporary Amperex Technology raised HK$35.7 billion in a blockbuster offering.

As of end-March, there were 120 active IPO applications, up from 84 at the end of December, according to HKEX data.

CaoCao operates across 136 cities in China, where it competes with the likes of Didi Chuxing and AutoNavi for a piece of the trillion-dollar mobility market.

CaoCao, which manufactures its own vehicles via its partnership with Geely, has yet to turn a profit. It expects to record another net loss this year due to continued significant costs and marketing expenses, but sees a "path to profitability" around efforts to build scale and improve efficiency.

The company's revenue rose 37% in 2024, while net loss narrowed to 1.25 billion yuan, equivalent to US$174.1 million, from 1.92 billion yuan in the prior year.

Huatai International, ABC International, GF Securities (Hong Kong) are acting as joint sponsors for the IPO.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

June 17, 2025 00:03 ET (04:03 GMT)

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