EV maker, Vanke’s unit slump in HK debut amid rough IPO market

HONG KONG: An electric vehicle (EV) maker and a unit of China’s real estate developer China Vanke Co plunged in their trading debuts in Hong Kong, following initial public offerings (IPO) that together raised more than Us$1.5bil (Rm7bil).

Chinese EV maker Zhejiang Leapmotor Technology Co slumped as much as 33% to HK$32.20 (RM19).

The company raised about Us$800mil (Rm3.7bil) after selling shares at HK$48 (RM28), the bottom of a marketed range.

Onewo Inc, China Vanke’s property management unit, fell as much as 7.9% to HK$45.45 (RM27).

The firm garnered about Us$739mil (Rm3.4bil), with shares priced at HK$49.35 ( RM29), the mid-point of a price interval given in the offering.

The Chinese companies are starting to trade in what’s been a tough year for IPO performance and equity markets in general.

Before yesterday, half of the 16 firms that listed in Hong Kong this year following IPOS that raised over Us$100mil (Rm464mil) ended their first session below water, with three unchanged and five rising above their listing price, Bloomberg data show.

Leapmotor’s slide puts it on course for the steepest first-day decline by a listing larger than Us$250mil (Rm1.16bil) in Hong Kong this year.

In its deal, the portion reserved for individuals was undersubscribed, with about only 16% of the 13.1 million shares in the public offering placed, according to a statement on Wednesday.

The tranche for funds was “moderately” oversubscribed, the document reads.

Onewo’s IPO saw slightly better numbers. About 82% of 11.7 million shares offered to the public were placed, with demand from institutional investors topping 3.3 times more than those available, a statement showed. — Bloomberg