HONG KONG: Chinese electric vehicle maker Zhejiang Leapmotor Technology has postponed plans to raise $1.5 billion through an initial public offering (IPO) in Hong Kong due to low investor interest.
Bankers and consultants had hoped that a deal the size of Leapmotor’s forecast, which would have been Hong Kong’s biggest IPO ever in 2022, would jump-start the city’s new issuance market.
Instead, the deal has been put on hold and Leapmotor is looking to downsize the deal, one of the sources said.
Sources said the decision to hold the Hong Kong IPO was made after meeting with investors over the past week to understand sentiments towards the company and its listing plans.
The first source said a smaller IPO size would be more attractive to cautious investors and the deal could be canceled if market conditions improve.
Leapmotor did not respond to an emailed request for comment.
Sources could not be named as the information was not yet public.
($1 = 6.9354 Chinese Yuan Renminbi)
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