In light of potential trade tensions, Breton Technology plans to raise HK$ 30 million ( US$ 30 million ) from its Hong Kong initial public offering ( IPO ) in response to Chinese electric vehicle maker Xpeng.
According to a filing to the Hong Kong stock exchange on Friday, the Shanghai-based company intends to sell 13 million shares for HK$ 18 each, which would put it at about HK$ 6.8 billion following the IPO. On May 7, the property is anticipated to begin trading.
According to China Insights Consultancy, Breton ranked second in supplies of battery-electric widebody dump cars with power powers greater than 650 kilowatt-hours between 2022 and 2024. It accounted for 18.3 % of the new-energy widebody chuck vehicle market in China last year, putting it fourth among all producers.
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However, due to significant upfront investments in product development and an increase in raw material and component costs, its net loss increased 20 % year on year to 274.5 million yuan ( US$ 37.5 million ) in 2024.
According to the business,” major rises in shipping prices and the prices of organic materials or components may result from currency fluctuations, tariffs, or fluctuations in gas offer, along with other economic or political conditions,” according to the registration. Any significant increase in these charges may result in higher operating costs and potential lower profit margins.
Breton stated that it would concentrate its growth on Africa, Middle East, and Southeast Asia. We do not anticipate the rising US-China tensions having a major impact on our organization, it said.
More than 100 companies have been waiting in the area since late 2024, and Hong Kong’s Investor market has remained resilient in spite of international conflicts stoked by the US’ “reciprocal” taxes. In the first quarter, 15 businesses raised almost triple the amount raised by KPMG, which is second place globally for Investments.
Among Breton’s owners are state-owned bank Hunan Xiangtan Caixin, private equity firm Rockets Capital, owned by Shenzhen-listed Broad-Ocean Motor, and Shenzhen-listed Broad-Ocean Motor.
The main investors are Changfeng Asset Management and Hong Kong-based Changfeng Xinwei Electronic, who both agreed to subscribe to HK$ 63.5 million, or roughly 27 % of the stocks on offer.
Breton intends to use the Investor proceeds to invest in tech, create new goods and services, set up manufacturing facilities, and buy machinery.
Joint partners of the Offering are China International Capital Corporation and CMB International.
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