Sequoia Capital backed EV maker Leapmotor obtains approval for Hong Kong IPO - P...

Sequoia Capital backed EV maker Leapmotor obtains approval for Hong Kong IPO

Sequoia Capital backed EV maker Leapmotor obtains approval for Hong Kong IPO

13 hours ago

Chinese electric vehicle maker Zhejiang Leapmotor Tech has obtained approval for its US$ 1.5 billion IPO on Hong Kong Stock Exchange.

The start-up, whose backers include the private equity firms Sequoia Capital China and the video surveillance company Zhejiang Dahua Technology, will start an investor roadshow as early as next week and is preparing for the deal launch in September, International Financing Review reported, citing sources familiar with the situation, who spoke on condition of anonymity.

Leapmotor filed for a Hong Kong IPO in March this year. If the IPO go through, Leapmotor joins Xpeng, Li Auto and NIO to become the fourth Chinese EV maker to list in Hong Kong over the past 18 months.

Underwriter for the listing are CICC, Citi, JPMorgan and CCB International.

Founded in 2015 by Zhu Jiangming and Fu Liquan, Leapmotor produces smart EVs in Zhejiang’s provincial city of Jinhua, it targets the mid and high-end segments with models ranging from 150,000 yuan to 300,000 yuan (US$21,900 to US$43,800). Last month, Leapmotor delivered 12,044 vehicles, representing a 177% increase year-over-year.

The company delivered its first vehicle model, the S01, in 2019. In 2020, it delivered the second model, a fully electric T03 mini car that was China’s three bestselling models in 2021.

In 2021, Leapmotor booked a total revenue of 3.13 billion yuan, surging 396 percent year-over-year, but it reported a net loss of 2.8-billion-yuan last year, widening from net losses of 1.1 billion yuan and 901.1 million yuan in 2020 and 2019.

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