HK Stock Market Move | LEAPMOTOR (09863) rose more than 6% in the morning session, with China FAW Group strategically investing in LEAPMOTOR and subscribing to a 5% stake at a premium.

LEAPMOTOR (09863) rose more than 6% in early trading, as of the time of writing, it has risen by 5.13% to 52.5 Hong Kong dollars, with a trading volume of 1.58 billion Hong Kong dollars. On the news front, LEAPMOTOR announced that the company has entered into a domestic stock subscription agreement with FAW Equity. The company will issue 74.8322 million domestic shares to FAW Equity, accounting for 5% of the enlarged issued share capital. The subscription price is 50.03 RMB per domestic share (approximately 55.29 Hong Kong dollars), a premium of 10.71% over LEAPMOTOR's closing price of 49.94 Hong Kong dollars on December 24th. The total amount received by the company is approximately 3.744 billion RMB (approximately 4.1375 billion Hong Kong dollars). It is reported that the raised funds will be used in three main areas: around 50% for research and development investment; around 25% for supplementing operating capital and general corporate purposes; the remaining 25% for expanding sales and service networks and enhancing brand awareness. The domestic shares subscribed by FAW Equity will have a one-year lock-up period. This strategic investment will lay the foundation for future cooperation between the two parties in the commercial and industrial sectors.