China’s Li Auto to boost as much as $1.93 billion from Hong Kong itemizing

A Li Xiang One hybrid SUV is on show throughout the 18th Guangzhou Worldwide Vehicle Exhibition at China Import and Export Honest Advanced on November 23, 2020 in China.

Li Zhihao | Visible China Group | Getty Pictures

GUANGZHOU, China — Chinese language electrical car start-up Li Auto plans to boost round $1.93 billion in a Hong Kong secondary itemizing.

The Nasdaq-listed firm stated it is going to provide 100 million class A abnormal shares to traders at a value of not more than 150 Hong Kong {dollars} or $19.29. Remaining pricing might be introduced by Aug. 6.

At 150 Hong Kong {dollars} per share, Li Auto would elevate 15 billion Hong Kong {dollars} or $1.93 billion.

Li Auto is pushing forward with the itemizing regardless of a latest sell-off in Chinese language know-how shares that was triggered by regulatory crackdowns hitting every thing from meals supply to experience hailing.

Chinese language electrical car makers try to reap the benefits of the thrill across the trade to boost cash.

Final month, Li Auto rival Xpeng raised round $1.8 billion in a Hong Kong itemizing.

However Li Auto can be tapping right into a pattern of U.S.-listed Chinese language corporations seeking to elevate cash nearer to house. Alibaba, NetEase and are amongst China’s know-how giants which have carried out secondary listings.

Doing a secondary itemizing in Hong Kong additionally helps to hedge in opposition to a few of the geopolitical danger that has spilled over into monetary market regulation.

Earlier this 12 months, the U.S. Securities and Trade Fee adopted guidelines that impose stricter auditing necessities for overseas corporations listed within the U.S. These necessities carry the specter of delisting for corporations that run afoul of the foundations.

And final month, the SEC additionally stated it is going to require extra disclosures from Chinese language corporations seeking to checklist on U.S. exchanges.

Li Auto stated that it plans to make use of the proceeds of its share providing for analysis and growth into applied sciences and future fashions, in addition to increasing manufacturing capability and its retail retailer footprint.

Competitors within the Chinese language electrical car market is getting intense. Begin-ups like Li Auto, Xpeng and Nio are competing in opposition to established gamers like BYD and Tesla in addition to conventional automakers.

Li Auto stated Sunday it delivered 8,589 Li One autos in July, a month-to-month file. The Li One SUV is the corporate’s solely mannequin available on the market. It is a hybrid car that comes with a gasoline tank for charging the battery, extending the 180-kilometer driving vary by about 620 km (385.35 miles).


News and digital media editor, writer, and communications specialist. Passionate about social justice, equity, and wellness. Covering the news, viewing it differently.

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