According to Reuters, two sources said that Chinese electric car maker Zhejiang Leapmotor Technology will raise shares in its Hong Kong initial public offering (IPO) at HK$48 ($6.12) per share. Price raised $800 million.
The price was at the bottom of the range of HK$48 to HK$62 per share set by Leap Motor’s 131 million shares deal. Potential investors reduced their orders amid turmoil in global financial markets, one of the sources said.
The documents of the Hong Kong Stock Exchange show that the joint sponsors of Leap Motor’s IPO are JPMorgan Chase, CICC, Citi, and CCB International, which are expected to start trading on the Stock Exchange on September 29, 2022.
The data shows that for the whole year of 2021, the company delivered a total of 43,748 electric vehicles, an increase of 443.5% over 2020; and 51,994 smart electric vehicles in the first half of 2022, an increase of 265.3% over the same period in 2021.
In terms of models, Leapmotor plans to launch seven new pure electric models by the end of 2025 at a rate of one to three models per year, covering sedans, SUVs and MPVs of various sizes. All seven new models will focus on China’s mid-to-high-end mainstream new energy vehicle market and will be developed on the company’s A, C and D platforms, respectively.
In addition, Leapmotor’s operating income from 2019 to 2021 was 117 million yuan, 631 million yuan, and 3.132 billion yuan, respectively, and the net profit during the period was -901 million yuan, -1.1 billion yuan, and -2.846 billion yuan.
