(Dec 12): Huawei Technologies Co’s electric-vehicle (EV) partner Seres Group Co is considering a second listing in Hong Kong, people familiar with the matter said, marking the latest such move by a mainland-listed company.
Seres, based in Chongqing, has been speaking to prospective advisers about a potential share sale that could help it raise more than US$1 billion (RM4.44 billion), the people said, asking not to be identified because the matter is private. A listing in Hong Kong could take place as soon as next year if Seres decides to proceed, the people said.
Seres’s Shanghai-listed shares have risen 80% this year, giving the company a market value of US$28.5 billion.
Deliberations are ongoing and details such as the size of any offering may change, the people said. There’s no certainty Seres’s deliberations will lead to a transaction, they added.
A representative of Seres didn’t respond to requests for comment.
Sizeable listings are returning to Hong Kong, boosted by Beijing’s economic stimulus measures that have fuelled a stock-market rally. The benchmark Hang Seng Index has risen more than 20% this year, heading for its first annual gain since 2019.
About US$10.5 billion has been raised through first-time share sales in the city this year, a significant increase from all of 2023, according to data compiled by Bloomberg. Still, that amount is a far cry from the levels of activity seen during and before Covid.
Second listings have recently become more popular as Chinese companies see Hong Kong as a viable option to raise capital offshore, while their listings on the mainland provide a benchmark valuation.
Other Chinese companies considering similar moves include energy drink maker Eastroc Beverage Group Co, drugmaker Jiangsu Hengrui Pharmaceuticals Co and condiment maker Foshan Haitian Flavouring & Food Co. In September, home appliance maker Midea Group Co raised US$4.6 billion. Last month, China’s biggest express-delivery firm SF Holding Ltd raised US$749 million.
Seres, which has an alliance with Huawei to make EVs, employs more than 16,000 people and produces cars including its flagship SUV Aito M9, which sells for as much as 569,800 yuan, according to its website. Founded in 1986, the company borrows its name from the ancient Greek word meaning “Land of Silk”, referring to China. It listed in the A-share market in 2016.
Seres in October agreed to invest 11.5 billion yuan in an intelligent vehicle equipment manufacturer owned by Huawei, aiming to obtain a 10% stake in the Shenzhen-based company after the investment.
Uploaded by Tham Yek Lee