Nasdaq-listed Chinese language electrical carmaker Li Auto to lift 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 Photos

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

The Nasdaq-listed firm stated it would provide 100 million class A atypical shares to buyers at a value of not more than 150 Hong Kong {dollars} or $19.29. Remaining pricing will probably 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 are attempting to benefit from the thrill across the trade to lift cash.

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

However Li Auto can also be tapping right into a pattern of U.S.-listed Chinese language corporations seeking to elevate cash nearer to residence. Alibaba, NetEase and JD.com 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 number of the geopolitical danger that has spilled over into monetary market regulation.

Earlier this year, the U.S. Securities and Exchange Commission adopted rules that impose stricter auditing necessities for international corporations listed within the U.S. These necessities carry the specter of delisting for corporations that run afoul of the principles.

And final month, the SEC also said it will require additional disclosures from Chinese language corporations seeking to record 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 said Sunday it delivered 8,589 Li One vehicles in July, a month-to-month report. The Li One SUV is the corporate’s solely mannequin in the marketplace. It is a hybrid car that comes with a gas tank for charging the battery, extending the 180-kilometer driving vary by about 620 km (385.35 miles).

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