Seres (09927.HK) opened below its issue price on its first trading day, with a market capitalisation exceeding HK$210 billion, making it the largest automotive IPO of the year.

ZC Asia has learnt that Seres Group Holdings Limited (Stock Code: 09927.HK) commenced trading on the Hong Kong Stock Exchange today. This listing marks Seres as the first domestic luxury new energy vehicle manufacturer to be listed concurrently on both the Shanghai Stock Exchange and the Hong Kong Stock Exchange.

Following the opening bell, the share price dipped 2.0% from its issue price of HK$131.50 to HK$128.90, subsequently extending losses to HK$119.00 – a 9.51% decline – with market capitalisation briefly contracting to HK$206.294 billion.

By press time, the share price had recovered slightly to HK$123.2, stabilising the market capitalisation at HK$213.575 billion. Despite the tepid opening, the subscription results demonstrated strong investor interest in the automaker. The global offering comprised 108.619 million shares, with the Hong Kong public offering oversubscribed 132.68 times and the international offering 8.61 times. The IPO raised a total of HK$14.283 billion, yielding net proceeds of HK$14.016 billion after deducting issuance expenses.

Financial data disclosed in the prospectus reveals significant performance improvements for Seres in recent years. From 2022 to 2024, the company's revenue surged from RMB 34.056 billion to RMB 145.113 billion. Revenue in 2024 soared by 305.47% year-on-year, successfully achieving profitability with net profit attributable to shareholders reaching RMB 5.946 billion. In the first half of 2025, the company's revenue reached RMB 62.359 billion, with net profit attributable to shareholders growing 81.25% year-on-year to RMB 2.941 billion.

The AITO brand has become Seres's core business pillar. In the first half of 2025, AITO brand vehicle sales revenue reached RMB 56.282 billion, accounting for 90.3% of total revenue, with its models representing approximately 76.52% of the company's total sales volume. Seres acknowledged in its prospectus: ‘Business growth and enhanced profitability are primarily attributable to the success of AITO vehicles.’

Notably, Seres explicitly stated that approximately 70% of the net proceeds from this fundraising will be allocated to R&D investment. Of this, around 40% will be directed towards enhancing core technological capabilities and innovation capacity, including intelligent cockpit and driver assistance technologies, as well as powertrain system R&D. The remaining funds will be used for diversifying marketing channels, expanding overseas markets, and supplementing working capital.

As Huawei's alliance of automotive partners continues to expand, Seres' listing on the Hong Kong stock market provides both financial backing for its technological R&D and strengthens its long-term competitive position in the fiercely contested market. Whether this newly profitable automaker can sustain its advantage with capital market support remains to be seen.

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.