Leapmotor Shares Fall After Stellantis Takes Stake in EV Maker for $1.58 Billion
26 Octubre 2023 - 1:05AM
Noticias Dow Jones
By Jiahui Huang
Zhejiang Leapmotor Technology's shares were lower at the mid-day
break after initially rising on news of a 1.5 billion euro ($1.58
billion) investment by Stellantis in the Chinese electric-vehicle
maker.
Leapmotor shares ended the morning session down 9.4% at 33.40
Hong Kong dollars, reversing course from early gains of as much as
11.5%.
Some of the whipsawing into negative territory arose from early
investors in the company seeking an exit point, said Ke Qu, an
analyst at CCB International Securities.
"The stock price is under pressure due to selling pressure from
pre-IPO investors," Qu said in an email. "Most may think this
partnership announcement creates [a] better exit window for their
three-year or even longer investment."
Qu added that Leapmotor is relatively short on cash compared
with other listed startups in China, and can benefit from a partner
to leverage its exposure and competitiveness in European or U.S.
markets.
"Greater access to [the] EU means better profitability than
elsewhere in the world," she said.
Netherlands-based Stellantis said early Thursday that it is
taking a roughly 20% stake in Leapmotor, with the companies
planning to create a joint venture to sell Leapmotor products
outside of China, starting with Europe.
Leapmotor debuted in Hong Kong in September 2022 after raising
about HK$6.06 billion (US$774.8 million) in its initial public
offering.
The Chinese company delivered 44,325 vehicles in the third
quarter, up almost 25% from a year earlier. Revenue in the quarter
rose 32% on the year to CNY5.66 billion.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
October 26, 2023 01:50 ET (05:50 GMT)
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