In an initial public offering (IPO) that was announced on Tuesday, Chinese EV maker Leapmotor Technology stated that it aimed to raise $1.03 billion.
The agreement, which will be Hong Kong’s biggest IPO in 2022, involves the company selling 130.82 million shares. Notably, the filings indicated that the shares would be offered between HK$48 and HK$62 per share.
Yahoo News reported that Leapmotor’s agreement occurs as Onewo Space-Tech Service generates up to $733 million in the market through its Monday-launched initial public offering (IPO). Onewo reduced the amount of its IPO from its original goal of raising $2 billion. As a result, dealmakers hope for a favorable reception to spur other IPOs before the year ends.
According to sources who previously spoke to Reuters, Leapmotor had intended to raise $1.5 billion but had to scale back the offer due to investors’ poor interest.
Based on the filings, Leapmotor has secured the support of five core investors, spearheaded by the Zhejiang and Jinhua industrial funds, who will purchase up to $308.33 million worth of shares. The other reported investors are Jinkai Leading Fund, GF Fund, and Kwok Tai East.
According to statistics from the China Passenger Car Association, the firm had a market share of 2.3% and was placed 12th out of all Chinese EV manufacturers in terms of sales during the first seven months.
It is worth noting that most of the funds generated will go toward increasing production capacity and supporting R&D.
Aiming primarily at China’s middle- and lower-end mass market, Leapmotor currently provides four electric vehicle models in the 79,500 yuan ($11,466.40) –300,000 yuan ($43,269.44) price range. In 2021, it produced 43,748 vehicles, a 444% increase from the previous year.