Shanghai (ZXZC)- Chinese EV startup WM Motor is adjusting its shareholding structure and is likely to start a new round of financing in the fourth quarter this year to go public on overseas capital market, according to a local media outlet, citing a person familiar with the plan.

WM Motor's logo; photo credit: WM Motor

The rumor came after the company reduced its registered capital. According to the business data provider Tianyancha, the registered capital of WM Smart Mobility Technology (Shanghai) Co.,Ltd., the parent company of WM Motor, slumped 42.99% to 689 million yuan ($106.89 million) on September 13. Meanwhile, the directors of the board shrank to 4 from 12 members with 9 people dropping the seats, while 1 person joined the lineup.

Responding to a request from the local media, WM Motor said the reduction in the registered capital is a normal adjustment made on the basis of the corporate strategy and business development demands. However, the startup declined to comment on the rumored overseas listing plan.

In the domestic market, WM Motor is seeking to list its shares on the sci-tech innovation board (the STAR Market). It completed the pre-listing tutoring in January, while the draft prospectus has not been released yet.

Citing an unnamed source, a local media channel said in April that WM Motor had postponed its scheduled initial public offering (IPO) on Shanghai's tech-focused STAR Market as an investor said some problems were founded during the review of the application documents.

WM Motor denied such rumors, calling the report ‘fake news’. The company later stated that it was moving forward with its IPO process in an orderly manner, and directed media outlets to follow official notices from the Shanghai Stock Exchange.