Chinese electric vehicle maker Leapmotor is launching a Hong Kong IPO worth up to $1 billion
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HONG KONG, Sept 20 (Reuters) – Chinese electric vehicle maker Zhejiang Leapmotor Technology aims to raise $1.03 billion
The company is selling 130.82 million shares in the transaction, which will be sold at a price range of HK$48 to HK$62 a share, the filings showed.
Leapmotor’s deal comes while China Vanke’s real estate services group Onewo Space-Tech Service is on the market and has raised as much as $733 million in its IPO, which started Monday. Onewo had hoped to raise $2 billion but reduced the size of its IPO. Continue reading
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The two deals are the largest in Hong Kong since February, and dealmakers are hoping a positive reaction before the end of the year could lead to more IPOs.
However, bankers and lawyers remain pessimistic about a significant recovery in IPOs as tensions between China and the US remain high, the war between Russia and Ukraine is still ongoing and inflation remains stubbornly high in most parts of the world remains.
Leapmotor had planned to raise $1.5 billion but reduced the scope of the deal after a tepid reaction from investors, sources previously told Reuters. Continue reading
The IPO was halted two weeks ago following the company’s initial briefings with potential investors amid volatility in financial markets, the sources said.
The company will have a market cap of $6.99 billion to $9.03 billion based on the price range presented to investors.
The final price of the shares is scheduled for Friday and the shares will start trading on September 29th.
Leapmotor has attracted five key investors — led by industrial funds Zhejiang and Jinhua — who will buy up to $308.33 million worth of shares, according to the filings.
Leapmotor produces four electric vehicle models primarily targeting China’s middle and lower-end mass market in a price range of 79,500 to 300,000 yuan ($11,466.40 to $43,269.44), according to its website and prospectus filed with the Hong Kong Stock Exchange.
According to the China Passenger Car Association, the company ranked 12th among all EV manufacturers in China in the first seven months, with a market share of 2.3%.
Most of the cash raised will be used for research and development and expanding production capacity, the filings showed.
($1 = 7.8488 Hong Kong dollars)
($1 = 7.8488 Hong Kong dollars)
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Reporting by Scott Murdoch in Hong Kong; Edited by Kim Coghill and Stephen Coates
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Scott Murdoch
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