Shares of Zhejiang Leapmotor Technology Co. dived in their Hong Kong debut, after the Chinese electric-car maker raised US$772 million in net proceeds during a tough time for public offerings.
The stock was last down 28% at HK$34.55 (US$4.40) after falling as much as 33%. The company had set its offering price at HK$48.00 a share, at the bottom of its HK$48.00-HK$62.00 indicative range.
The Hangzhou-based company plans to use the offering proceeds to invest in research and development, enhance production and expand its sales networks.
Leapmotor’s initial offering, though under-subscribed in Hong Kong, was still one of the Asian financial hub’s largest share sales this year. Globally, IPO volumes have been tepid as investor appetite for riskier, high-growth assets is curbed by rising interest rates.