Leapmotor secures around HK$659 million investment through share subscriptions

Beijing (Gasgoo)- On January 19, Chinese new energy vehicle manufacturer Zhejiang Leapmotor Technology Co., Ltd. (“Leapmotor”) announced its H-share subscription agreements with Jinhua Industrial Fund on the Hong Kong Stock Exchange. 

The company conditionally agreed to issue H-shares, with a total value not exceeding 200 million yuan. The subscription price for each H-share is set at HK$43.8 (excluding relevant levies and transaction fees).

Simultaneously, Leapmotor entered into a domestic share subscription agreement with Wuyi County Financial Investment. The automaker conditionally agreed to issue 10,034,964 domestic shares at a subscription price of 39.86 yuan per share, equivalent to 0.74% of the company's issued shares.

The proceeds from the subscription agreements amount to a total of HK$659 million (not exceeding 600 million yuan). Following the transaction, Leapmotor's largest shareholder group will see a slight share decrease from 23.47% to 23.21%. Founder of Leaomotor, Mr. Zhu Jiangming's holdings will be diluted from 6.93% to 6.85%, and Stellantis' holdings will decrease from 21.26% to 21.02%.

In October 2023, Leapmotor announced Stellantis' plan to invest approximately €1.5 billion, acquiring about 20% of Leapmotor's equity and securing two seats on Leapmotor's board.

The funds raised through these transactions are intended for R&D, marketing, production capacity enhancement, and general corporate purposes. Specifically, 40% will be allocated to expanding and upgrading Leapmotor’s smart electric vehicle portfolio, enhancing R&D teams, improving electrification technology, and advancing the development of advanced automotive intelligence technologies, including autonomous driving and smart cockpit systems. Another 25% will be used for marketing, expanding sales and service networks, boosting brand awareness, and entering overseas markets. The remaining 15% and 20% will be directed towards enhancing production capacity, automation capabilities, and general corporate purposes, respectively.