Chinese electric vehicle (EV) manufacturer Zhejiang Leapmotor Technology (Leapmotor) will price its Hong Kong initial public offering (IPO) at HKD48 (USD6.12) per share with a goal of raising USD800m, as reported by Reuters on September 25. Leapmotor said last week that it planned to sell 130.82m shares at a price range of HKD48 to HKD62 (USD6.12 to USD7.9) per share, effectively making it Hong Kong’s largest IPO this year. According to Leapmotor’s regulatory filings, the company plans to use the raised funds for product research and development as well as to increase its production capacity and sales network.

Leapmotor has so far released four EV models ranging from USD11,500 to USD43,000, with the intention to release seven additional pure EV models by the end of 2025, at an average rate of three models per year. Prior to this IPO, Leapmotor completed six rounds of fundraising totaling more than RMB11.5bn (USD1.62bn). The company’s pre-IPO value was RMB22bn (USD3.09bn). According to its prospectus, Leapmotor sold 8,050 new vehicles in 2020 and 43,700 vehicles in 2021, representing a 443.5% increase YoY. From January through August of this year, the total number of automobiles delivered by Leapmotor was 76,600. In addition, the company also saw a significant increase in income recently. From 2019 to 2021, its revenue was RMB117m (USD16.41m), RMB631m(USD88.52m), and RMB3.13bn (USD440m), in chronological order.

Sources:

https://www.reuters.com/business/autos-transportation/china-ev-maker-leapmotor-set-raise-800-mln-hong-kong-ipo-sources-2022-09-25/

https://finance.sina.com.cn/stock/hkstock/ggipo/2022-09-20/doc-imqmmtha7990173.shtml

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