Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

China EV maker Leapmotor set to raise $800 million in Hong Kong IPO

Economy Sep 25, 2022 06:40AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect
 
US500
-0.12%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
HK50
-0.33%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Scott Murdoch

HONG KONG (Reuters) - Chinese electric vehicle (EV) maker Zhejiang Leapmotor Technology is set to raise $800 million by pricing its shares at HK$48 ($6.12) each in its Hong Kong initial public offering (IPO), said two sources with direct knowledge of the matter.

While that is less than the $1.03 billion the EV maker had said it was aiming to raise in its regulatory filings last week, the IPO would still be the city's largest this year. It had planned to raise $1.5 billion but cut the size after a lukewarm response from investors.

The sources spoke on condition of anonymity as the pricing information was not public. Leapmotor declined to comment.

The pricing revealed on Sunday is at the bottom of the range of HK$48 to HK$62 a share that Leapmotor has set for the 130.82-million-share deal.

Potential investors cut back their orders amid volatility in global financial markets, one source said.

In the United States, the S&P500 dropped 4.7% last week as the Federal Reserve raised interest rates and markets remained concerned about high inflation. Hong Kong's Hang Seng Index fell 4.4%, its worst for 10 weeks.

Leapmotor, based in Hangzhou, produces four EV models that mainly target China's middle and lower-end mass market in a 79,500-300,000 yuan ($11,500-$43,000) price range, according to its website and prospectus filed with the Hong Kong Stock Exchange.

It plans to use the IPO funds for research and development and to boost its production capacity and sales network, according to regulatory filings.

Chinese battery maker CALB is raising up to $1.7 billion in an IPO, according to a company statement, in a deal that would eclipse Leapmotor and make it the biggest new share sale in Hong Kong in 2022.

Hong Kong IPO volumes have fallen nearly 90% as global markets remain roiled by China regulatory uncertainty, rising interest rates, high inflation and the Russia's war in Ukraine.

Despite the Leapmotor and CALB deals, plus China Vanke's property services unit Onewo Inc raising $733 million, dealmakers are cautious there will be a solid rebound in new share sales in Hong Kong and overseas before 2023.

"It feels that these IPOs are kind of one-off transactions and think the Hong Kong market is not yet fully opened up," said Shifara Samsudeen, LightStream Research analyst who publishes on Smartkarma.

"Most of the deals were downsized," she said. "There have been long gaps between a hearing approval to pre-marketing and listing, these all suggest that the market is yet to return to normalcy."

($1 = 7.8493 Hong Kong dollars)

China EV maker Leapmotor set to raise $800 million in Hong Kong IPO
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email