HONG KONG (AFP) – Chinese electric vehicle manufacturer Zhejiang Leapmotor Technology is hoping to raise more than USD1 billion with an initial public offering in what would be the largest debut so far this year for Hong Kong.
The Hangzhou-headquartered company is offering around 131 million shares priced at HKD48-HKD62 (USD6.10-USD7.90), according to a prospectus filed with the Hong Kong stock exchange yesterday.
The listing will be a test of investor appetite in China’s EV sector, which has shown huge growth in recent years. The industry has also so far avoided the kind of sudden scrutiny from regulators that has bedevilled other tech sectors and hobbled profits. China’s electric car market is particularly competitive, with manufacturers jostling to take advantage of an industry boosted in recent months by generous purchase subsidies from local governments.
The Chinese government introduced a string of measures, including a tax break extension, in July to stimulate sales of electric cars against the backdrop of an economic slowdown.
The measures are supposed to support the economy at a time when sporadic COVID-19 lockdowns around the country have dampened consumer enthusiasm and business confidence. Founded in 2015, Leapmotor focusses on the mid to high-end EV market with a price range of CNY150,000 to CNY300,000 (USD21,400-USD42,800).
Co-founder Fu Liquan also leads surveillance firm Dahua Technology, one of the world’s largest manufacturers of security cameras.
Many Chinese EV manufacturers are looking to build an overseas presence and raise capital to fund that expansion.
Chinese EV makers XPeng and Nio both forged secondary Hong Kong listings recently.
China’s EV market is huge, covering everything from luxury vehicles to more affordable models.
