(Bloomberg) -- Chinese electric-vehicle maker Zhejiang Leapmotor Technology Co. slumped in its first day of trade in Hong Kong, joining a slew of listings this year that fell below their offering price in their debut.
The shares declined as much as 15% to HK$41.00. They were sold at HK$48 apiece, the bottom of the marketed range in an offering that raised about about HK$6.3 billion ($803 million).
The Hangzhou-based firm is debuting in the Asian financial hub during a grim week for equities trading globally, with volatility jumping after hawkish comments from Federal Reserve policymakers and a surge in Treasury yields. The Hang Seng Index is down about 13% in September, with major benchmarks across Asia also retreating.
As of Wednesday, half of the 16 firms that listed in Hong Kong this year after offerings that raised more than $100 million ended their first session below water, three were unchanged and five rose above their listing price, Bloomberg data show.
The portion of Leapmotor shares reserved for individuals in the IPO was lower than the amount offered, while those set aside for funds were “moderately” oversubscribed, according to a statement to the exchange this week.
Leapmotor is part of an industry that has largely escaped the scrutiny of Chinese regulators, whose spotlight has hobbled the nation’s broader technology sector and put a damper on share sales overseas. EV makers are seen as an important component of the country’s push toward electrification and clean energy.
Five cornerstone investors, including Zhejiang Industrial Fund and Jinhua Industrial Fund, agreed to purchase around $308.5 million of the company’s stock. Leapmotor is planning to use the IPO proceeds for business expansion and brand awareness promotion, according to the prospectus.
JPMorgan Chase & Co., China International Capital Corp., Citigroup Inc. and CCB International Holdings are joint sponsors of Leapmotor’s IPO.
©2022 Bloomberg L.P.
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