EV Startup Leapmotor Technology Files for Hong Kong IPO

Electric Vehicle startup, Leapmotor Technology has applied to raise capital through an initial public offering (IPO) in Hong Kong, according to a stock exchange filing.

“Hong Kong can attract large mainland EV makers to list as the city is an international market that is suitable for carmakers that want to establish their brands globally,” said Kenny Ng, a strategist at Everbright Securities International.

New York was the first listing destination for Xpeng, Li Auto and NIO because of the depth of the financial pool in the world’s largest capital market, Ng said. “Such a route is no longer optimal for Chinese companies as [regulators] in both the US and China have adopted tougher regulations,” he said. “More EV firms are likely to opt for listing in Hong Kong instead.”

Leapmotor Technology’s vehicles are priced between CNY150,000 and CNY300,000 (USD23,600 and USD47,200). In the past three years, the company delivered three models, the S01, the T03 minivan, and the C11 sport utility vehicle, and it is expected to start deliveries of the C01 model in the third quarter of this year. It sold nearly 43,750 vehicles in 2021 and 10,300 in the first two months of 2022.

“We will further penetrate the mid- to high-end segment in China’s new energy vehicle market and cater to evolving and diverse customer needs by rapidly expanding and upgrading our portfolio,” the company said. “We [aim] to launch eight new models by 2025, at a pace of one to three models every year covering sedans, SUVs, and MPVs in various sizes.”

Leapmotor would follow XPeng Motors (NYSE: XPEV), Li Auto (NASDAQ: LI), and Nio (NYSE: NIO) in listing on the Hong Kong Stock Exchange.

By Michael Elkins | [email protected]

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