Chinese EV maker Leapmotor to price Hong Kong IPO, aims to raise up to US$1 billion while braving shaky market
- The IPO price range will be between HK$48 and HK$62 each, with five cornerstone investors buying US$308 million worth of shares, according to a filing
- Leapmotor faces a less welcoming market than the three Chinese EV makers that preceded it with Hong Kong listings, analysts say
Chinese electric-vehicle (EV) maker Zhejiang Leapmotor has set the share price range and revealed cornerstone investors for its initial public offering (IPO) in Hong Kong, which could raise as much as HK$8.1 billion (US$1.03 billion) from new investors.
The company is aiming to price 130.82 million shares in the offering at HK$48 to HK$62 each, an exchange filing on Tuesday showed. It is expected to determine the final price on September 23 and start trading on September 29, according to the indicative timetable.
The filing reveals five cornerstone investors, including Zhejiang and Jinhua industrial funds, who will buy up a combined stake worth about US$308 million.
The IPO comes as market sentiment has taken a dive amid growing concerns of a recession following a series of interest-rate increases by the US Federal Reserve, including another anticipated hike this week.
“I don’t think the investor sentiment is strong given the global market, including Hong Kong, has been [continuously] dropping,” said Kenny Wen, head of investment strategy at Hong Kong-based broker KGI Asia.