Chinese electric-vehicle maker Zhejiang Leapmotor Technology Co., founded in 2015, is holding an initial public offering in Hong Kong from which it hopes to raise up to HK$8.1 billion ($1 billion).
According to the prospectus on the website of the Hong Kong stock exchange, the company will offer 131 million shares at prices between HK$48 and HK$62. Zhejiang Industrial Fund, Jinhua Industrial Fund, and three other cornerstone investors have already committed to purchase about $308.5 million in stock.
Analysts note the offering will be a good test of investor attitudes toward the Chinese EV sector, which has remained relatively unscathed by government regulators as the government clamped down strict scrutiny on the rest of the nation’s broader technology sector. The government considers the nation’s EV manufacturers a vital component of the nation’s push toward greener clean energy and electrification of the economy.
The money raised will be earmarked for brand-awareness promotion and business expansion, according to the deal’s terms. The company is seeking to focus on the mid to high-end EV market, targeting a price range between 150,000 and 300,000 yuan ($21,400-$42,800). That segment is forecasted to be the fastest growing by 2023.
The share-sale will be priced by the company on Friday, and trading will begin on September 29th.
Joint sponsors of Leapmotor’s IPO include China International Capital Corp., Citigroup Inc., JPMorgan Chase & Co. and CCB International Holding.
The Daily Financial Trends
