The recent Hong Kong debut of Chinese EV manufacturer Seres saw its shares take a hit, sparking a 3.7% decline. This event marks a significant development in the city's sizzling IPO market, with Seres joining a growing list of mainland Chinese carmakers like BYD, Nio, and Xpeng in their quest for funding.
Trading under the code 9927, Seres' shares opened at HK$128.90, a slight dip from the IPO price of HK$131.50, which was set at the upper limit of the marketed range. This price represented a notable 22% discount compared to its Shanghai-listed shares. Despite the initial slump, the company successfully raised an impressive HK$14.3 billion (US$1.8 billion) through its IPO.
The demand for Seres' offering was high, with a 132-times oversubscription rate. Retail investors were allocated 10.86 million shares, accounting for approximately 10% of the total offering. This tranche attracted a substantial number of applications, with 57,928 accepted out of 202,300 valid submissions.
The international placement was also a success, with an oversubscription rate of 8.61 times. Institutional investors were allocated 97.76 million shares, comprising the remaining 90% of the IPO.
Seres' cornerstone investors include prominent names such as Schroders, Mirae Asset Securities, Huatai Capital Investment, and Sanhua Intelligent Controls.
But here's where it gets interesting: despite the initial share price drop, Seres' IPO raised a substantial amount of capital. This raises questions about the long-term prospects of Chinese EV makers in the global market. Are these companies undervalued, or is there a reason for the initial investor hesitation?
What are your thoughts on the future of Chinese EV manufacturers? Do you think Seres' performance reflects a broader trend, or is it an isolated incident? Feel free to share your insights and opinions in the comments below!
