By Michael Elkins
Chinese electric vehicle manufacturer Leapmotor Technology (HK:9863) suffered through the Hong Kong exchange’s worst trading debut so far this year, plunging more than 40 percent on Thursday morning.
Leapmotor raised around $800 million earlier this month with an initial public offering that saw its shares sold for HK$48 ($6.11). However, on the electric vehicle company’s first day of trading Thursday, the company’s share price tumbled as much as 41.6 percent to HK$28.05, the steepest first-day decline by a listing larger than $250 million in Hong Kong this year according to Bloomberg News.
Leapmotor’s initial offering was still one of the Asian financial hub’s largest share sales this year. Founded in 2015, Leapmotor focuses on the mid-to-high-end EV market with a price range of 150,000 to 300,000 yuan ($21,400-$42,800). The Hangzhou-based company plans to use the offering proceeds to invest in research and development, enhance production, and expand its sales networks.
JPMorgan Chase & Co, China International Capital Corp, Citigroup Inc, and CCB International Holdings are joint sponsors of Leapmotor’s IPO.