Chinese electric vehicle maker Zhejiang Leapmotor Tech said that it has passed the hearing of the Hong Kong Stock Exchange for its listing on the bourse. Joint sponsors of the deal are CICC, Citi, JPMorgan and CCB International.
Leapmotor reportedly initiated pre-marketing for its Hong Kong IPO on Monday, and is planning to raise $1.5 billion through the listing. The company is targeting September for the deal launch, although the timetable could still change as it is subject to market conditions, said the report.
If successful, Leapmotor will be the fourth Chinese EV maker to list in Hong Kong in the past 18 months. Li Auto and XPeng raised $1.7 billion and $2.1 billion in August and June 2021, respectively, and Nio listed in Hong Kong in March by way of introduction, which did not entail any fundraising. All three companies are also listed in New York.
The carmaker targets the mid and high-end segments with models ranging from 150,000 yuan to 300,000 yuan ($21,900 to $43,800) and delivered over 43,000 vehicles last year. It delivered its first mass-produced model, the S01, in 2019, followed by the mini car T03 in May 2020 and the C11 SUV in October.
Zhu Jiangming and Fu Liquan, who founded the company in 2015, together with their wives own 30.01% of the company. It produces smart EVs in Jinhua, a city in Zhejiang province, with an annual capacity of 200,000 vehicles, according to its filing.
Sequoia Zhisheng Capital, which is ultimately controlled by Sequoia China’s partner Zhou Kui, owns about 4% of the company.
Leapmotor recorded adjusted net losses of 810 million yuan in 2019, 935 million yuan in 2020 and 2.629 billion yuan in 2021, making it losing a total of 4.32 billion yuan in three years, according to its prospectus.