Huawei EV partner Seres Slumps on Hong Kong debut despite strong demand
Shares of Chinese electric vehicle maker Seres Group, the key automotive partner of Huawei, fell on their first day of trading in Hong Kong on Wednesday, mirroring a broader tech sell-off across global markets.
The stock slipped as much as 7.2% from its listing price after raising $1.84 billion in the city's latest major IPO. Seres, which is already listed on the Shanghai Stock Exchange, priced 108.6 million shares at HK$131.50 each. The offering size was expanded during bookbuilding due to strong investor interest, News.Az reports, citing Reuters.
Shares began trading at HK$128.90 and dropped to HK$122 before recovering to HK$125.30, down 4.7% by midday. The company's Shanghai-listed shares also declined around 5%.
The weak trading debut came amid a regional tech pullback, following a sharp drop in the Nasdaq Composite overnight on concerns over overstretched valuations. The Hang Seng Index was flat after an early slide.
Despite the first-day dip, investor appetite for Seres’ listing was robust. The retail tranche was 133 times oversubscribed, while the institutional book was nearly nine times covered, regulatory filings showed.
Seres is known for its partnership with Huawei to build smart EVs — a collaboration seen as part of China’s push to challenge global players in intelligent electric vehicles.
Hong Kong continues to reassert itself as a global IPO hub, surpassing New York and Nasdaq in total proceeds so far this year (excluding SPACs), with $31.2 billion raised — nearly triple the level from the same period in 2024, according to LSEG data.
The city’s pipeline remains active: Chinese autonomous driving firms Pony AI and WeRide are set to begin trading on Thursday after raising a combined $1.2 billion in separate offerings.
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