Chinese EV maker Seres’ shares close unchanged in lacklustre Hong Kong debut
Trading under the stock code 9927, Seres’ shares fell as much as 10.3 per cent before closing flat at its IPO price of HK$131.50
Shares of Seres Group fell on their debut in Hong Kong on Wednesday, the first US$1 billion IPO in the city this year not to register gains on the first day of trading.
Seven other IPOs, including battery-maker Contemporary Amperex Technology (CATL), which raised US$5.3 billion in May, sizzled on debut.
Trading under the stock code 9927, shares of Chongqing-based Seres closed unchanged at HK$131.50, after slumping as much as 10.3 per cent. It first changed hands at HK$128.90, compared with the IPO price of HK$131.50 – which was set at the top of the marketed range. The price represented a 22 per cent discount to its Shanghai-listed shares. The company raised HK$14.3 billion (US$1.8 billion) from the IPO.
Seres’ offer was oversubscribed 132 times, with 10.86 million shares allocated to retail investors, representing about 10 per cent of the total offering. The tranche attracted about 202,300 valid applications, of which 57,928 were accepted.
The international placement was 8.61 times oversubscribed, with 97.76 million shares allocated to institutional investors – accounting for the remaining 90 per cent of the IPO.
“Hong Kong is an important gateway for us to access global resources and global markets,” said Zhang Xinghai, founder of Seres Group, at a listing ceremony at the Hong Kong stock exchange. “Listing here allows Seres to better serve global users and showcase the charm of intelligent, green and low-carbon products made in China.
“The funds raised in Hong Kong will mainly be used for global product research and development, sales and channel expansion, as well as the necessary buildout of international production capacity.”