(Nov 5): Seres Group Co, the maker of China’s bestselling luxury vehicle, fell on its Hong Kong trading debut after raising HK$14.3 billion (US$1.8 billion) during its public offering and adding to the city’s banner year for new listings.
The electric vehicle partner of Huawei Technologies Co declined 2% to HK$128.90 a share on Wednesday amid a down day globally for stocks. During the listing, the stock was priced at the high end of the marketed range. But at HK$131.50 each, it’s a 22% discount to Seres’ last close in Shanghai.
For Seres, which was once known for making cheap minivans, the Hong Kong debut raises the visibility of a company that’s had a remarkable ascent in China’s cut-throat auto industry, overtaking storied incumbents such as BMW and Mercedes-Benz to make the country’s bestselling luxury vehicle — the Aito M9.
Though Seres, which has been listed in Shanghai since 2016, has underperformed the local benchmark this year amid bruising competition among Chinese automakers, the stock has surged almost 1,600% in the past five years.
“Seres has achieved success through its Aito brand in partnership with Huawei,” said Eugene Hsiao, the head of China equity strategy at Macquarie Capital Ltd. “Investors looking for a premium auto proxy may be interested in the shares.”
See also: Hong Kong developer New World to raise US$1.9b of new debt for liquidity
Founded in 1986 as a producer of springs and shock absorbers, the company gradually climbed its way up the value chain, expanding into motorcycles, minivans and now, electric vehicles.
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