China EV maker Leapmotor set to raise $800 million in Hong Kong IPO

Chinese electric vehicle maker Zhejiang Leapmotor Technology is set to raise $800 million by pricing its shares at HK$48 each in its Hong Kong initial public offering, said two sources with direct knowledge of the matter. While that is less than the $1.03 billion the EV maker had said it was aiming to raise in its regulatory filings last week, the IPO would still be the city's largest this year. Hong Kong's Hang Seng Index fell 4.4%, its worst for 10 weeks. Discover the stories of your interest Leapmotor, based in Hangzhou, produces four EV models that mainly target China's middle and lower-end mass market in a 79,500-300,000 yuan price range, according to its website and prospectus filed with the Hong Kong Stock Exchange. Chinese battery maker CALB is raising up to $1.7 billion in an IPO, according to a company statement, in a deal that would eclipse Leapmotor and make it the biggest new share sale in Hong Kong in 2022. Hong Kong IPO volumes have fallen nearly 90% as global markets remain roiled by China regulatory uncertainty, rising interest rates, high inflation and the Russia's war in Ukraine. Despite the Leapmotor and CALB deals, plus China Vanke's property services unit Onewo Inc raising $733 million, dealmakers are cautious there will be a solid rebound in new share sales in Hong Kong and overseas before 2023.