Electric vehicle maker Leapmotor launches up to $1B Hong Kong IPO

leapmotor launches 1b hong kong ipo

China-based electric vehicle maker Zhejiang Leapmotor Technology is aiming to raise $1.03 billion in a Hong Kong initial public offering (IPO), according to regulatory filings, the city’s largest in 2022.

The firm is selling 130.82 million shares in the deal that will be sold in a price range of HK$48 to HK$62 each, the filings revealed.

Leapmotor’s deal comes as China Vanke’s property services group Onewo Space-Tech Service is in the market raising nearly $733 million in its IPO launched on Monday. Onewo had hoped to raise $2 billion but reduced the size of its IPO.

The two deals are the largest in Hong Kong since February 2022 and dealmakers hope a positive response could prompt more IPOs before 2022 ends.

Lawyers and bankers remain pessimistic about a major bounce back in IPOs as the Russia-Ukraine war still exists, China-US tensions remain high, and inflation stays inflexibly high in most parts of the world.

According to sources, Leapmotor had planned to raise $1.5 billion but reduced the size of the deal after a lukewarm response from investors.