Seres Launches IPO, Raising Over HK$12.9 Billion with 70% Allocated to R&D

ZC Asia has learnt that Seres Group (Stock Code: 09927) formally commenced its Hong Kong IPO process on 27 October, planning a global offering of 100.2 million H-shares at a price not exceeding HK$131.50 per share. The shares are expected to commence trading on the Hong Kong Stock Exchange at 9:00 am on 5 November. This IPO is anticipated to become the largest automotive IPO on the Hong Kong stock market this year.

Under the offering arrangements, Seres has entered into agreements with 22 cornerstone investors for a total subscription amount of approximately US$826.5 million. Assuming no exercise of the over-allotment option or adjustment rights, the net proceeds from the global offering at the maximum offer price would amount to approximately HK$12.925 billion. The company plans to allocate approximately 70% of the proceeds to research and development, 20% to overseas market expansion and charging network construction, and 10% as working capital.

Seres has demonstrated significant growth in the new energy vehicle sector in recent years. Financial data indicates the company achieved full-year revenue of RMB145.1 billion in 2024, representing a 305.5% year-on-year increase. Its gross profit margin rose from 7.2% in 2023 to 23.8% in 2024, further increasing to 26.5% in the first half of 2025. Net profit attributable to shareholders reached RMB5.9 billion in 2024 and RMB2.9 billion in the first half of 2025.

The AITO series emerged as the primary driver of this performance growth. In 2024, the AITO brand delivered 387,100 vehicles, representing a 268% year-on-year increase. Among these, the AITO M7 became the best-selling domestic model in the ¥300,000 price bracket, with annual deliveries reaching approximately 200,000 units. The AITO M9 led sales in China's ¥500,000+ segment, achieving over 150,000 annual deliveries. The AITO M8, launched in April 2025, secured over 30,000 orders within 24 hours of its market debut.

Seres' origins trace back to the Phoenix Electrical Spring Factory established in 1986, later entering automotive manufacturing through Dongfeng Sokon. The company achieved rapid market breakthroughs following its deepened collaboration with Huawei in 2021, launching the AITO series. However, this partnership has also brought challenges such as technological dependency and brand independence. The IPO proceeds will be prioritised for R&D investment, seen as a crucial step to strengthen its autonomous technological capabilities and address market competition.

Currently, Seres operates a ‘super factory’ in Chongqing, equipped with high-quality agile delivery capabilities. This has supported the AITO M9 in surpassing 150,000 units produced within 10 months of its launch. According to third-party reports, the AITO brand topped the new energy vehicle reputation rankings in the second half of 2024 with an 82% Net Promoter Score (NPS), while securing first place in new vehicle quality performance for three consecutive years.

Amid intensifying global competition in the new energy vehicle sector, Seres' Hong Kong listing injects capital into technological R&D and overseas expansion, while also providing a crucial opportunity to secure greater autonomy for development within the wave of intelligent vehicle transformation.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.