Aridge, the flying-car developer backed by Chinese electric vehicle maker Xpeng, has raised nearly US$200 million in fresh funding as it prepares for a potential initial public offering (IPO) in Hong Kong this year.

Existing investors including GL Ventures, the venture capital arm of Hillhouse Investment, and HongShan – formerly Sequoia China – participated in the latest round, according to a statement released on Friday.

The fundraising brings Aridge’s total equity financing to about US$1 billion, making it the largest funding pool for a flying car developer in Asia.

The capital injection comes as the company accelerates plans for both commercialisation and a public listing.

Aridge – formerly known as AeroHT – had confidentially filed for an IPO with the Hong Kong stock exchange, appointing JPMorgan Chase and Morgan Stanley as underwriters, the South China Morning Post reported in January, citing two sources familiar with the matter. The IPO was expected to take place as soon as this year, the report said.

At the same time, the company is ramping up production capacity.