China EV maker Leapmotor pauses US$1.5b Hong Kong IPO: sources

CHINESE electric vehicle maker Zhejiang Leapmotor Technology has shelved a plan to raise US$1.5 billion through an initial public offering (IPO) in Hong Kong because of lukewarm investor interest, said two sources with direct knowledge of the matter.

Bankers and advisers had hoped a deal of the size planned by Leapmotor, which would have been Hong Kong’s largest IPO so far in 2022, would revive the city’s flagging new issue market.

Instead, the deal has been put on hold and Leapmotor is considering cutting the size of the transaction, one of the sources said.

The decision to pause the Hong Kong IPO was made after the company met with investors over the past week to gauge sentiment towards the company and its listing plans, the sources said.

A smaller IPO size would be more attractive to cautious investors and the deal could be brought back if market conditions improve, the first source said.

Leapmotor did not respond to an emailed request for comment. REUTERS