Leapmotor to Raise RMB6.7 Billion via Premium Domestic Share Issues to FAW Equity and Jinyi High-tech

An update from Zhejiang Leapmotor Technology Co., Ltd. Class H ( (HK:9863) ) is now available.

Zhejiang Leapmotor Technology has entered into a domestic share subscription agreement with Jinyi High-tech to issue nearly 60 million new domestic shares at a premium price, alongside an earlier agreement with FAW Equity, bringing the total new domestic share issuance to about 134.8 million shares. The combined placements will raise approximately RMB6.74 billion, of which around 70% will be allocated to research and development and 30% to working capital and general corporate purposes, potentially reinforcing Leapmotor’s technology roadmap and balance sheet while diluting existing shareholders. To reflect the enlarged capital base from these issuances, the board is also proposing amendments to the company’s articles of association concerning registered capital and share count, which will require shareholder approval and completion of the subscriptions, aligning the company’s governance documents with its expanded equity structure.

The most recent analyst rating on (HK:9863) stock is a Buy with a HK$69.00 price target. To see the full list of analyst forecasts on Zhejiang Leapmotor Technology Co., Ltd. Class H stock, see the HK:9863 Stock Forecast page.

More about Zhejiang Leapmotor Technology Co., Ltd. Class H

Zhejiang Leapmotor Technology Co., Ltd. is a Chinese new energy vehicle manufacturer focused on developing and selling intelligent electric vehicles. Listed in Hong Kong as a joint stock company with both domestic and H shares, it emphasizes research and development to strengthen its position in the competitive EV and smart mobility market.

Average Trading Volume: 7,990,967

Technical Sentiment Signal: Sell

Current Market Cap: HK$68.08B

For a thorough assessment of 9863 stock, go to TipRanks’ Stock Analysis page.