Shares of Seres Group fell on their debut in Hong Kong, the first US$1 billion IPO in the city this year not to register gains on the first day of trading. The stock closed unchanged at HK$131.50, after initially dropping by 10.3%, with an IPO price set at the top of the range.

Seres’ offer was oversubscribed 132 times, with 10.86 million shares allocated to retail investors and 97.76 million shares to institutional investors. The company raised HK$14.3 billion (US$1.8 billion) from the IPO, with strong interest from both retail and institutional investors.

Founded in 1986, Seres shifted to new-energy vehicles in 2016 and has become one of the few profitable Chinese EV makers. The company reported a net income of 5.9 billion yuan (US$827.4 million) last year, making it one of only three EV players in China with positive earnings.

Seres’ partnership with Huawei Technologies has been central to its success, with their Aito M9 becoming the bestselling luxury vehicle in China. The company plans to use the listing proceeds to boost research and development spending and accelerate its overseas expansion.

The listing adds to Hong Kong’s busiest year for jumbo fundraising since 2021, following the success of high-profile listings like CATL. Seres’ listing reflects the return of long-duration capital to China-linked deals, showcasing the city’s importance as a gateway for global markets.

Read more at Yahoo Finance: Chinese EV maker Seres’ shares close unchanged in lacklustre Hong Kong debut