Ideanomics Inc (NASDAQ:IDEX), the greentech and Fintech advisory group, revealed it may take its Malaysia-based subsidiary Treeletrik public via an IPO in Singapore or Hong Kong this year as it updated on the electric vehicle manufacturer.
The group bought 51% ownership in the holding companies of Treeletrik last year. Already expanding, Treeletrik has secured sizeable electric motorbike and moped orders through distributors in Indonesia, while talks are also ongoing with other countries.
Indonesia, like many other countries in the ASEAN region, relies heavily on motorbikes due to cost and traffic congestion.
To complement the bike sales opportunities, Ideanomics is also assisting Treeletrik with developing commercial electric vehicle (EV) activities.
As part of its expansion plans for the subsidiary, Treeletrik has now received the land title (from leasehold) in a port area for development into an assembly facility
The assessed value of the 250-acre site at the Gebeng Industrial Estate in Kuantan, Pahang is put at around US$25 million.
Treeletrik is planning to bring in a number of China-based manufacturing partners to help round out the EV offerings under the Treeletrik brand, said Ideanomics.
Those discussions are taking place directly with Treeletrik management and augmented with discussions facilitated by Ideanomics' electric vehicle subsidiary, Mobile Energy Global (MEG).
"MEG has been able to attract interest from China's belt-and-road development agencies for the South Asia and ASEAN regions, and anticipates that interest to develop into investment both directly and through China-based commercial EV and battery manufacturers," the firm added.
"The IPO will provide Treeletrik will additional capital to fuel its growth plans, and in turn unlock value for the broader investor market," it added.
Shares in New York added over 6% to $0.35.
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