Leapmotor applies for initial public offer in Hong Kong, joining Xpeng, Li Auto and NIO as electric car makers call the city their fundraising home

Leapmotor Technology, an assembler of electric vehicles (EVs) based in Hangzhou, has applied to raise capital through an initial public offering (IPO) in Hong Kong, according to a stock exchange filing.

The start-up, whose backers include the private equity firms Sequoia Capital China and the video surveillance company Zhejiang Dahua Technology, may raise more than US$1 billion, according to market sources familiar with the plan. Lepmotor did not provide financial details in its filing.

Leapmotor joins Xpeng, Li Auto and NIO on the Hong Kong stock exchange, using the world’s fourth-largest capital market as their fundraising avenue. Hong Kong was the world’s top IPO destination in seven of the previous 13 years.

“Hong Kong can attract large mainland EV makers to list as the city is an international market that is suitable for carmakers that want to establish their brands globally,” said Kenny Ng, a strategist at Everbright Securities International.

New York was the first listing destination for Xpeng, Li Auto and NIO because of the depth of the financial pool in the world’s largest capital market, Ng said.

“Such a route is no longer optimal for Chinese companies as [regulators] in both the US and China have adopted tougher regulations,” he said. “More EV firms are likely to opt for listing in Hong Kong instead.”