A gong inside the Hong Kong Stock Exchange. China Vanke’s subsidiary Onewo and EV maker Zhejiang Leapmotor Technology began trading on the Hong Kong market on Thursday.
Paul Yeung | Bloomberg | Getty Images
Leapmotor and Onewo, among Hong Kong’s largest completed initial public offerings of the year, dropped on their first day of trade in the city on Thursday.
Chinese electric vehicle maker Leapmotor’s shares tumbled as much as 41.6% from its offer price of 48 Hong Kong dollars ($6.11) per share to 28.05 Hong Kong dollars at session lows. In the afternoon session, the stock recovered slightly, but still closed 33.5% lower at 31.90 Hong Kong dollars.
Shares of Onewo fell 7.9% from its offer price of 49.35 Hong Kong dollars ($6.29) per share in early trade. After the lunch break, the stock slid as low as 42.05 Hong Kong dollars before staging a recovery in the final hour. It closed at 46 Hong Kong dollars, 6.79% lower.
The moves come after the companies’ shares reportedly fell in grey market trading the previous day.
The broader Hang Seng index was last up 1.49%.
The retail tranche of shares for both initial public offerings were undersubscribed, according to their respective filings. Around 82% of Onewo’s shares for the local market were bought, and only 16% of Leapmotor were purchased, 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) show 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 steep drop from the same period in 2021, in which there were 69 new listings that raised 271.4 billion Hong Kong dollars ($34.6 billion).
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