(Yicai Global) Sept. 17 -- WM Motor Technology has replaced its Shanghai-based owner with a new unit set up in Suzhou to take advantage of the smaller city's listing requirements as the electric carmaker prepares for an initial public offering, The Paper reported, citing people familiar with the matter.
Suzhou WM Smart Travel Technology now owns all of WM Motor after the withdrawal of WM Smart Travel Technology Shanghai, corporate data website Tianyancha shows. The Shanghai company controls Suzhou WM, which was founded on Aug. 30.
The NEV maker will make a statement related to the matter at the end of this month at the earliest, The Paper said yesterday. In July, WM Motor said it is seeking up to USD1 billion in financing to boost product development, its sales network, and customer service.
Founded in 2015, WM Motor could use the money because Geely Holding Group is suing the startup for CNY2.1 billion (USD293.7 million) over alleged copyright infringement. A Shanghai court is due to start hearing the case today.
WM Motor is confident of winning because Geely's accusation is groundless, a company official told The Paper. Geely filed suit because it seeks to suppress innovation and hinder WM Motor's development and listing, the person added. Many WM Motor executives, including founder Shen Hui, once worked for Geely.
WM Motor kicked off deliveries of its first mass-produced vehicle, the WM EX5, last year.
Editor: Emmi Laine