(Yicai) June 17 -- Caocao Mobility, the ride-hailing firm owned by Geely Holding Group’s founder and Chairman Li Shufu, aims to raise more than HKD1.8 billion (USD233.1 million) in an initial public offering in Hong Kong.

Caocao will sell nearly 44.2 million shares for HKD41.94 (USD5.34) apiece, the Suzhou-based company’s filing with the Hong Kong Stock Exchange showed today. The shares will debut on June 25 under the stock ticker [HKG: 2643].

Caocao has a 5.4 percent share of China’s ride-hailing market, making it second only to Didi Chuxing with more than 70 percent, according to Frost & Sullivan, which expects the market to grow 134 percent to CNY804.2 billion (USD112 billion) in 2029 from CNY344.4 billion last year.

Founded in 2015, Caocao operates across 136 cities. Its gross transaction value jumped 39 percent to CNY17 billion (USD2.4 billion) last year from 2022, with that through third-party aggregators such as Amap and Meituan Taxi climbing to 85 percent from 50 percent. Revenue surged 91 percent to CNY14.6 billion (USD2.03 billion) in the period, while the firm’s net loss shrank 38 percent to CNY1.2 billion (USD173.5 million).

The IPO has six cornerstone investors committed to buying HKD951.6 million (USD121.2 million) of the shares. Among them, Mirae Asset Securities Hong Kong will purchase HKD274.7 million worth, Gotion High-Tech Hong Kong HKD163.8 million, and Mercedes-Benz Mobility Services HKD122.8 million.

Caocao expects net proceeds of over HKD1.7 billion. It plans to use the funds to repay bank loans, improve its auto solutions and service quality, develop purpose-built vehicles, enhance its technology and invest in autonomous driving, expand its geographical coverage, and for working capital and other general corporate purposes.

Geely’s Li will remain Caocao’s controlling shareholder after the IPO, indirectly holding just over 77 percent of the total shares issued through Ugo Investment. He will also retain the majority of the voting rights, controlling about 81 percent.

Editor: Futura Costaglione