That is the newest funding Leapmotor has acquired after saying a 1.5 billion euro funding from Stellantis on October 26, with the subscription value a 70 p.c premium to its closing value in Hong Kong immediately.
(Picture credit score: CnEVPost)
Chinese language new vitality car (NEV) maker Leapmotor has acquired investments from two native authorities funds, after it acquired an funding from European automotive big Stellantis NV nearly three months in the past.
Leapmotor entered into an H-share subscription settlement with the Zhejiang Jinhua metropolis trade fund on January 19, and the corporate has agreed to subject H-shares totaling as much as RMB 200 million yuan ($27.8 million), in response to a Hong Kong Inventory Alternate announcement immediately.
The subscription value is HK$43.80 per H-share, a 70 p.c premium to Leapmotor’s closing value of HK$25.80 on January 19.
Leapmotor additionally entered right into a subscription settlement for its home shares immediately with the monetary funding arm of Wuyi county, Jinhua metropolis, to which it is going to subject 10.03 million home shares at a subscription value of RMB 39.86 (equal to HK$43.80) per share.
The gross proceeds to Leapmotor from these two agreements will complete HK$659 million ($84.3 million), which might be used for analysis and improvement investments, advertising and marketing, enhancement of manufacturing capability, improve in working capital and basic company functions.
These share subscriptions are strategic investments made by the traders and are of the identical nature as different strategic investments that the corporate has lately gained, Leapmotor mentioned.
This demonstrates the assist for Leapmotor’s electrical car enterprise and the investoers’ confidence in its long-term development and prospects, the corporate mentioned.
It additionally helps strengthen enterprise and industrial cooperation in Wuyi county and Jinhua metropolis, benefiting the native financial system, in response to the announcement.
Leapmotor is headquartered in Hangzhou, Zhejiang province, and it has a producing facility in Jinhua.
The financing is the second Leapmotor has secured up to now three months, because it tries to realize extra share within the aggressive Chinese language EV market.
Leapmotor introduced on October 26, 2023 that Stellantis would make investments €1.5 billion ($1.58 billion) in it and take an approximate 20 p.c stake, making the European automaker the most important exterior shareholder within the EV maker.
Stellantis’ funding contains subscribing to 194 million new shares issued by Leapmotor and spending HK$3.492 billion to purchase all 90 million Leapmotor shares held by video surveillance tools maker Dahua Expertise.
Notably, Leapmotor’s share value plummeted for a number of days after Stellantis’ funding was introduced, accumulating a drop of about 26 p.c in 4 buying and selling days.
On October 31, Leapmotor mentioned in an announcement that its founding crew had pledged to not switch or scale back their stake within the firm in any method over the following 10 years.
Based in 2015, Leapmotor’s fashions on sale embrace the mini EV T03, the coupe mannequin S01, the flagship SUV mannequin C11, and the flagship sedan C01.
Leapmotor initially supplied solely battery electrical car (BEV) fashions and unveiled plans to launch EREV fashions in 2022 to focus on the bigger marketplace for plug-in hybrids.
It started pre-sales earlier this month for its new mannequin, the C10, which is obtainable in each extended-range electrical car (EREV) variations and BEV variations, with an official launch set for March 1.
The pre-sale value vary for the C10 EREV is RMB 151,800 to RMB 181,800, and the pre-sale value vary for the C10 BEV is RMB 155,800 to RMB 185,800.
The Leapmotor C10 is roughly half the value of Li Auto’s (NASDAQ: LI) five-seat SUV, the Li L7, which is barely out there in EREVs and is at the moment priced at a beginning value of RMB 319,800, RMB 339,800, and RMB 379,800 for the three choices.
Leapmotor delivered a file 18,618 autos in December and 144,155 autos in 2023, up 29.67 p.c from 111,168 in 2022.
Stellantis to accumulate 20% stake in Leapmotor with €1.5 billion funding, to kind JV for worldwide markets
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