Two major Hong Kong IPOs plunge in trading debut: Chinese EV maker Leapmotor collapses, Onewo stock dip


A gong inside the Hong Kong Stock Exchange. China Vanke’s subsidiary Onewo and EV maker Zhejiang Leapmotor Technology began trading in the Hong Kong market on Thursday.

Paul Yeung | Bloomberg | Getty Images

Leapmotor and Onewo, one of the largest completed IPOs of the year in Hong Kong, fell on their first day of trading in the city on Thursday.

Shares of Chinese electric vehicle manufacturer Leapmotor plunged a whopping 32% from its bid price of 48 Hong Kong dollars ($6.11) per share. It last traded 27.7% lower.

Shares of Onewo fell 7.9% from its bid price of 49.35 Hong Kong dollars ($6.29) per share in early trading, having fallen 4.76% in the last.

The moves come after the companies’ shares reportedly fell in gray market trading the previous day.

The broader Hang Seng index was last up 1.49%.

The retail tranche of shares for both IPOs was signed, according to their respective filings. About 82% of Onewo’s shares for the local market were bought and only 16% of Leapmotor was bought, the filings said.

Unsold shares were allocated to international buyers.

Onewo, a subsidiary of property developer China Vanke, raised 5.6 billion Hong Kong dollars ($713.5 million), while Leapmotor raised 6.06 billion Hong Kong dollars ($771.7 million).

Data from the Hong Kong Exchange (HKEX) shows there were 48 new listings in Hong Kong from January to August in 2022, raising a total of 56 billion Hong Kong dollars ($7.1 billion) – a sharp drop from of the same period in 2021, in which there were 69 new offerings raising Hong Kong dollars 271.4 billion ($34.6 billion).

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