Shares of Seres Group fell on their debut in Hong Kong on Wednesday, the first US$1 billion IPO in the city this year not to register gains on the first day of trading.
Seven other IPOs, including battery-maker Contemporary Amperex Technology (CATL), which raised US$5.3 billion in May, sizzled on debut.
Trading under the stock code 9927, shares of Chongqing-based Seres closed unchanged at HK$131.50, after slumping as much as 10.3 per cent. It first changed hands at HK$128.90, compared with the IPO price of HK$131.50 – which was set at the top of the marketed range. The price represented a 22 per cent discount to its Shanghai-listed shares. The company raised HK$14.3 billion (US$1.8 billion) from the IPO.
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Seres’ offer was oversubscribed 132 times, with 10.86 million shares allocated to retail investors, representing about 10 per cent of the total offering. The tranche attracted about 202,300 valid applications, of which 57,928 were accepted.
The international placement was 8.61 times oversubscribed, with 97.76 million shares allocated to institutional investors – accounting for the remaining 90 per cent of the IPO.
“Hong Kong is an important gateway for us to access global resources and global markets,” said Zhang Xinghai, founder of Seres Group, at a listing ceremony at the Hong Kong stock exchange. “Listing here allows Seres to better serve global users and showcase the charm of intelligent, green and low-carbon products made in China.
“The funds raised in Hong Kong will mainly be used for global product research and development, sales and channel expansion, as well as the necessary buildout of international production capacity.”
Seres’ Aito M9 has become the bestselling luxury vehicle in China. Photo: Costfoto/NurPhoto via Getty Images alt=Seres’ Aito M9 has become the bestselling luxury vehicle in China. Photo: Costfoto/NurPhoto via Getty Images>
The company’s cornerstone investors include Schroders, Mirae Asset Securities, Huatai Capital Investment and Sanhua Intelligent Controls.
Founded in 1986, Seres started out making springs and shock absorbers before shifting into motorcycles and minivans. It pivoted to new-energy vehicles in 2016, and has grown into one of the few profitable Chinese EV makers. Net income came in at 5.9 billion yuan (US$827.4 million) last year, making Seres one of only three EV players in China with positive earnings, alongside BYD and Li Auto.
Its Shanghai-listed shares have surged almost 1,600 per cent in the past five years. The company listed on the bourse in 2016.
The listing adds to Hong Kong’s busiest year for jumbo fundraising since 2021, following the success of high-profile listings such as CATL, underscoring the return of long-duration capital to China-linked deals.
Seres’ partnership with Huawei Technologies – which provides intelligent cockpit systems and driving-assistance capabilities – has been central to its ascent. The firm’s Aito M9 has become the bestselling luxury vehicle in China, overtaking premium incumbents such as BMW and Mercedes-Benz, according to industry data.
Seres said it planned to deploy the listing proceeds to bolster research and development spending and accelerate its overseas expansion. The company currently has an annual production capacity of about 600,000 units, and has already expanded its presence to Europe, the Middle East, the Americas and Africa.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.
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