BRIEF: Leapmotor raises $430 million from share sale to state-run investor

9863.HK

Electric vehicle (EV) maker Zhejiang Leapmotor Technology Co. Ltd. (9863.HK) said on Tuesday it will raise about 3 billion yuan ($430 million) through a share placement to state-owned investor Jinhua Jinyi Hi-Tech Industrial Investment Group, with plans to use the funds for R&D and working capital.

Leapmotor said that under the domestic share subscription agreement, signed on Jan. 6, it will sell around 60 million domestic shares to Jinyi at 50.03 yuan per share. The price is equivalent to about HK$55.49 per share, representing a premium of 9.88% to the latest closing price of Leapmotor’s Hong Kong-listed H-shares.

The new share sale, when combined with a similar sale to FAW Equity Investment last month, will bring Leapmotor’s total to 134 million domestic shares issued in this round, accounting for about 8.66% of its enlarged share capital. The combined fundraising amounts to approximately 6.74 billion yuan, with around 70% earmarked for R&D and the remainder for general working capital.

Leapmotor’s shares opened lower on Wednesday, closing at HK$49.24 by the midday break, down 2.5%.

By Lee Shih Ta

To subscribe to Bamboo Works weekly free newsletter, click here

,
, , ,

Related Articles

RELATED ARTICLES

  1. MiniMax does AI
    BRIEF: Hongqiao raises $1.47 billion via share sale at 10% discount
    1398.HK
  2. Tian Tu’s Yoplait China sale leaves sweet, but also sour, taste
    1973.HK
  3. BRIEF: Weimob raises $201 million through share placement at 8.9% discount
    2013.HK
  4. BRIEF: SenseTime raises $318 million in share placement at 6.25% discount
    0020.HK
  5. BRIEF: Dmall raises $50 million in share placement at 10% discount
    2586.HK
  6. BRIEF: Laopu Gold raises $348 million through share placement to boost gold reserves
    6181.HK
  7. BRIEF: Guofu Hydrogen raises $11.67 million via share placement at 17% discount
    2582.HK
Discover hidden China stock gems in our weekly newsletter

Follow us

Facebook Twitter Linkedin Weixin Weibo Youtube

Subscribe to Our Free eNewsletter

Subscribe

Check out our content with some of our syndication partners

factiva

Recent Articles

Meta acquires Manus

Meta cuts Manus free from China, as regional lender gets premium bailout

In a landmark validation for Chinese AI, Facebook parent Meta has agreed to buy general AI agent maker Manus. But why is Meta also quite vehement about cutting all of Manus' China ties, both in terms of investors and business activity? And regional Chinese lender Weihai Bank has just received a major cash infusion from its local government in Shandong province. Is this a worrisome sign for investors?
META.US