BEIJING (Reuters) – Chinese smart vehicle supplier Shanghai PATEO Electronic Equipment Manufacturing Co is in talks with 22 potential investors to raise 1 billion yuan (114.3 million pounds) before its listing on the STAR market, a company spokesman told Reuters.

The Shanghai-based company raised 700 million yuan in its latest funding round in April at a 4.6 billion yuan valuation.

Its investors include Xiaomi Corp 1810.HK, Dongfeng Motor Group 0489.HK and Suning.Com 002024.SZ, the spokesman said, adding the new funding would be used for research and development.

The 11-year-old company is looking to apply for a STAR board listing in Shanghai by the end of this year.

PATEO’s products include sensors for autonomous driving as well as intelligent in-car software.

Its clients include Volkswagen AG VOWG_p.DE, FAW Group and Dongfeng Motor 0489.HK.

As the global auto industry pursues an electric and intelligent future, Chinese automakers and tech companies are developing technologies to make vehicles more connected and autonomous.

China said last year it hopes intelligent vehicles account for 30% of all new sales by 2035.

Bloomberg reported the fundraising on Tuesday.

Reporting by Yilei Sun and Brenda Goh; editing by Jason Neely

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