(Bloomberg) — G7, a fleet management company backed by Tencent Holdings Ltd., is weighing an initial public offering in Hong Kong that could raise about $500 million as soon as this year, people with knowledge of the matter said.
The Chinese firm is working with China International Capital Corp., Citigroup Inc. and Morgan Stanley on the proposed share sale, said the people, who asked not to be identified as the information is private.
Deliberations are ongoing and details of the fundraising such as size and timing could change, the people said. Representatives for CICC, Citigroup and G7 declined to comment, while a representative for Morgan Stanley didn’t immediately respond to requests for comment.
G7 uses artificial intelligence and Internet of Things technology to manage road freight and logistics services. It employs anti-fatigue cameras to call out bad driving, built-in advanced driver-assistance systems to send warnings about insufficient space between vehicles on highways, and real-time cargo weighing to prevent stealing.
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The company was founded in 2010 and takes its name from the G7 Beijing–Urumqi Expressway, the world’s longest desert highway. It raised $200 million in a round led by Trustbridge Partners and CS Capital in February, according to a press release.
G7 formed a joint venture in 2018 with Singapore-based investor GLP Pte and Nio Capital, a unit of electric vehicle maker Nio Inc., to focus on areas such as developing smart heavy-duty trucks powered by autonomous driving and logistics big data, a separate press release shows.
The startup counts GLP, Bank of China and Temasek Holdings Pte among its backers, according to the same release.
(Updates with CICC response in third paragraph.)
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