CHINA, 27 September 2022: Zhejiang Leapmotor Technology Co., a Chinese manufacturer of electric vehicles, raised roughly USD 800m(HK$6.3bn) in its Hong Kong initial public offering (IPO), according to persons familiar with the situation.
IPO price per share
The persons, who preferred to remain anonymous since the information is private, claimed that Leapmotor priced the offering at USD 6.11 (HK$48 per share). The business sold 131 million shares for between USD 6.22 and USD 7.90 each. A corporate external representative declined to comment.
Leapmotor’s initial public offering (IPO) is sponsored jointly by JPMorgan Chase & Co, China International Capital Corp, Citigroup Inc, and CCB International Holdings. The stock is expected to begin trading on September 29.
The sale by the Hangzhou-based company joins a group of listings of comparable scale as larger deals return to Hong Kong, while Bloomberg figures indicate that the amount of money raised through IPOs this year is still down by almost 80% from the same period in 2021.
According to the prospectus, Leapmotor intends to use the IPO proceeds to promote brand recognition and business growth.
Zhejiang Industrial Fund and Jinhua Industrial Fund were two of the five cornerstone investors who agreed to buy about USD 308.5 million worth of stock.
The initial public offering (IPO) comes after so-called “homecoming” transactions by Chinese EV manufacturers Li Auto Inc. and XPeng Inc. since last year, both of which are listed on the US stock exchange.
After seeking an alternate listing due to a disagreement between authorities in the two countries, the companies raised nearly USD 3.8 billion through their Hong Kong IPO. Another Chinese EV manufacturer, Nio Inc., decided to make its debut in the Asian hub in March without raising any money.
In the country’s drive toward electrification and sustainable energy, EV manufacturers are regarded as a crucial element.
With a price range of USD 21,146-USD 42,292 (150,000 to 300,000 yuan), the company primarily targets the mid- to high-end EV market.
According to the prospectus, which cites Frost & Sullivan, the industry is expected to increase at the quickest rate by 2023.
In 2021, Leapmotor delivered 43,748 cars, and in the first half of this year, 51,994 cars.