EV builder Leapmotor chasing US$1b Hong Kong IPO
Chinese electric vehicle manufacturer Zhejiang Leapmotor Technology is hoping to raise more than US$1 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 HK$48-HK$62 (US$6.10-US$7.90), according to a prospectus filed with the Hong Kong stock exchange on Tuesday. The listing will be a test of investor appetite in China's EV sector, which has shown huge growth in recent years. 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 Covid-19 lockdowns around the country have dampened consumer enthusiasm and business confidence. Founded in 2015, Leapmotor focuses on the mid to high-end EV market with a price range of 150,000 to 300,000 yuan. Many Chinese EV manufacturers are looking to build an overseas presence and raise capital to fund that expansion. (AFP)