Leapmotor Eyes IPO in Hong Kong

Image Source: Leapmotor

BEIJING, March 18 (TMTPOST) — Chinese electric vehicle maker Leapmotor has filed for public listing on HKEX (Hong Kong Exchanges and Clearing) on Friday, with China International Capital Corporation (CICC), Citibank, JPMorgan Chase and CCB International Asset Management being the sponsors of the IPO.

The company’s prospectus shows that 40% of the fund raised through the IPO (initial public offering) will be used for research and development, expanding its team and the development of its intelligent driving system Leapmotor Pilot and smart cockpit system Leapmotor OS. Around 25% of the fund raised will be invested in building up its production capacity. Another 25% will be used for expanding its business operation and branding. Around 10% will be used as cash for operation and general purposes.

Leapmotor has not disclosed its fundraising target and exact date of the IPO.

Founded in 2015, Leapmotor is a Chinese EV company focusing on mid and high-end EV models ranging from 150,000 yuan to 300,000 yuan.

Its prospectus shows that the company is capable of the design and manufacturing of key systems and electronic components of a smart electric vehicle. The company has built its own smart power system Leapmotor Power, intelligent driving system Leapmotor Pilor and smart cockpit system Leapmotor OS.

Leapmotor has rolled out three car models. In January 2019, the company rolled out Leapmotor S01, an electric vehicle that failed to capture massive market attention due to its niche positioning. The Leapmotor T03 released in May 2020 was able to perform better in the market and accumulated sales. In 2021, Leapmotor had an annual sales volume of 43,000 units, with T03 being the main sales driver. In September 2021, Leapmotor released EV SUV Leapmotor C11. The company delivered 10,300 cars between January and February 2022.

The increasing sales has helped drive Leapmotor’s revenue. The company’s prospectus shows Leapmotor’s revenue was 117 million yuan, 631 million yuan and 3.131 billion yuan in 2019, 2020 and 2021 respectively.