Leapmotor applied to list in Hong Kong on March 17, and its prospectus shows it plans to launch eight new models by the end of 2025.

(Image credit: Leapmotor)

Zhejiang Leapmotor Technology's plan for a Hong Kong initial public offering (IPO) was approved by the China Securities Regulatory Commission (CSRC), after the company filed a prospectus with the Hong Kong Stock Exchange in March.

Leapmotor was approved to issue up to 290 million ordinary shares, the completion of which will allow the company to list on the main board of the Hong Kong Stock Exchange, the CSRC said in an announcement Friday.

The company's 59 shareholders were permitted to convert an aggregate of 790 million unlisted shares into shares listed overseas, which will be listed and float in Hong Kong upon completion of the conversion, according to the announcement.

On March 17, Leapmotor applied for a Hong Kong listing and filed the first version of its prospectus with co-sponsors China International Capital Corporation (CICC), Citi, JPMorgan Chase and CCB International.

The initial prospectus did not disclose the number of shares Leapmotor wanted to issue or the amount of capital it planned to raise. Last October, Bloomberg cited people familiar with the matter as saying the company's Hong Kong listing could raise at least $1 billion.

Leapmotor was founded in 2015 and currently sells the T03, a mini EV, the S01, a coupe, and the C11, its flagship SUV.

On May 10, Leapmotor announced its flagship sedan C01 and began accepting reservations for a price range of RMB 180,000 ($26,770) - RMB 270,000.

The company delivered 43,748 electric vehicles in 2021, including 634 S01s, 39,149 T03s and 3,964 C11s, its prospectus shows.

As of December 31, 2021, Leapmotor had 3,190 full-time employees, including 1,082 R&D staff, or 33.9 percent, according to the prospectus.

As for the use of the capital raised in Hong Kong, Leapmotor said it expects 40 percent of the net amount to be used for R&D of new models and core technologies, 25 percent to enhance production capacity and 25 percent to expand the business and raise brand awareness, including the opening of flagship stores in Europe in 2023.

Leapmotor plans to launch eight new models by the end of 2025, with one to three new model each year before that.

Leapmotor delivered 12,044 vehicles in July, the third consecutive record month, according to data released by the company earlier this month.

Leapmotor files for Hong Kong IPO, aims to launch eight new models by 2025