Chinese electric-car maker Leapmotor gets green light for Hong Kong IPO, aiming to raise up to US$1.5 billion

Zhejiang Leapmotor Tech has won approval from the Hong Kong stock exchange’s listing committee, says a source

If successful, Leapmotor will be the fourth Chinese EV maker to list in Hong Kong in the past 18 months

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Employees work on the assembly line of the T03 electric car at a factory of Chinese EV maker Leapmotor on December 17, 2021 in Jinhua, Zhejiang Province. Photo: Getty Images

Published: 1:53pm, 26 Aug 2022Updated: 3:40pm, 26 Aug 2022

Electric-vehicle maker Zhejiang Leapmotor Tech has won approval from the Hong Kong stock exchange’s listing committee for an IPO (initial public offering), in which it aims to raise between US$1 billion and US$1.5 billion, according to a person familiar with the transaction.

The company will start an investor education process next week and is targeting September for the deal launch, although the timetable could still change as it is subject to market conditions, said the person, who is not authorised to speak publicly about the deal. News of the deal’s approval was first reported by International Financing Review on Thursday.

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 US$1.7 billion and US$2.1 billion in August and June 2021, respectively, according to Refinitiv data, 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.