HONG KONG, 27 October 2025 – China’s electric-vehicle maker Seres Group Co., a key partner to Huawei Technologies Co., Ltd. in the smart EV segment, has initiated investor orders for a Hong Kong public offering that could raise as much as HK$13.18 billion (approximately US$1.7 billion).
Deal Overview and Market Timing
According to the company’s filing, Seres is offering 100.2 million H-shares at a maximum price of HK$131.50 each, representing the upper end of the pricing range. The retail subscription window is set for 27 October to 31 October, with a pricing decision expected by 3 November and first trading on the Hong Kong exchange set to begin 5 November.
Seres is already listed on the Shanghai Stock Exchange and boasts a market capitalisation of more than US$36 billion. Notably, 22 cornerstone investors have committed approximately US$826.5 million, nearly half the base deal size. Among them, the largest single commitment comes from the Chongqing Industrial Parent Fund at around HK$2.18 billion.
Strategic Significance for Seres and the Asian EV Ecosystem
This listing marks a strategic milestone. For Seres, raising up to US$1.7 billion in Hong Kong enables expansion of its EV production capacity, R&D for intelligent-connected vehicles, and deeper collaboration with Huawei on smart module integrations. The move also signals Hong Kong’s revival as a major offshore capital-raising hub for Chinese issuers amidst increased regulatory pressures in U.S. markets.
For Asia’s EV industry, it reflects several broader trends:
- The intensifying competition in the smart-EV market where local Chinese firms are scaling globally.
- Chinese automakers seeking capital in Hong Kong to leverage both domestic demand and export-oriented ambitions.
- The growing importance of partnerships like that between Huawei and Seres, combining automotive-hardware manufacturing with telecom/tech ecosystem players.
Risks, Market Conditions & What To Watch
While the deal is ambitious, several risk factors and market dynamics merit attention:
- Market sentiment: Chinese equity valuations and IPO appetite will influence the deal’s success. Any weak sentiment could affect pricing or demand.
- Regulatory and geopolitical headwinds: With increasing U.S.–China tension, global investors may scrutinise Chinese automakers more heavily for supply-chain, technology-and-data, and regulatory risks.
- Execution risk: Seres will need to convert raised capital into tangible growth, scaling production, ensuring quality, leveraging the Huawei partnership effectively.
- VALuation pressure: At a current valuation above US$36 billion, expectations for Seres are high, the market will watch if growth and profitability justify the valuation.
Implications for Malaysian and Regional Investors
For Malaysian and broader Southeast-Asian investors, the Seres listing presents several opportunities and caution points:
- Opportunity for spill-in: Suppliers, technology providers or service partners in the region may gain contracts as Seres and its partners expand.
- Comparative benchmark: The listing sets a precedent for other regional EV firms eyeing Hong Kong or other capital-markets routes.
- Caution on partnerships: As EV manufacturing becomes more entwined with tech firms (like Huawei), investors must assess not only car-output but also software, ecosystem and supplychain readiness.
Final Word
At face value, the up to US$1.7 billion raise by Seres underpins both the maturity of the China EV sector and the rebound of Hong Kong as a capital-market destination. For Asia’s automotive and tech investors, the key takeaway is clear: the smart-EV race is increasingly about ecosystem, capital access and global execution, and companies like Seres are leading the charge. How this plays out will be a litmus test for valuations, global investor sentiment and regional manufacturing leadership.
