Seres Group Raises $1.8B in Hong Kong EV IPO Ahead of November 5 Trading

Seres Group, a Chinese electric vehicle manufacturer closely partnered with Huawei, successfully raised $1.8 billion through its Hong Kong IPO by selling 108.6 million shares at HK$131.50 each, including an 8.4% expansion via additional shares. The H-share listing, trading under ticker HKG: 9927 starting November 5, aims to support Seres' global expansion and establish an international capital platform, complementing its existing Shanghai Stock Exchange listing. The IPO price was set at a 22% discount to its Shanghai closing price, and despite some uncertainties around Stock Connect eligibility and A-H share fungibility, the listing is expected to strengthen the company's research, development, and cross-border growth. Seres reported significant 2024 financial growth with revenues up 305% year-on-year and a net profit of RMB 5.95 billion, while its automotive gross margin stood at 26.21%. The partnership with Huawei underpins Seres’ technological advancements, including its smart cockpit, autonomous driving systems, and next-generation range extender technology, positioning it as a prominent luxury new energy vehicle brand. The fresh capital from the IPO will enable Seres to enhance its product offerings and infrastructure, supporting future collaborations and solidifying its competitive position in the global EV market.