China electric vehicle (EV) maker Zhejiang Leapmotor Technology is set to raise $800 million by pricing its shares at HK$48 ($6.12) each in its Hong Kong initial public offering (IPO), according to 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 largest in the city in 2022. Earlier, it had planned to raise $1.5 billion but cut the size after a lukewarm response from investors.
The sources spoke on condition of anonymity as the pricing information was not yet public. Leapmotor did not immediately respond to a Reuters request for comment outside business hours.
Leapmotor, which is selling 130.82 million shares in the deal, had set a price range of HK$48-62 apiece for the shares.
Potential investors cut back their orders amid volatility in global financial markets, one of the sources said.
In the United States, the S&P500 dropped 4.65% last week after the Federal Reserve raised interest rates and as markets remain concerned about elevated levels of inflation.
Reuters