Home Listing rules China’s Li Auto to raise up to $ 1.93 billion on Hong...

China’s Li Auto to raise up to $ 1.93 billion on Hong Kong list

16
0

A Li Xiang One hybrid SUV is on display at the 18th Guangzhou International Automobile Exhibition at the China Import and Export Fair Complex on November 23, 2020 in China.

Li Zhihao | China Visual Group | Getty Images

GUANGZHOU, China – Chinese electric vehicle start-up Li Auto plans to raise around $ 1.93 billion in a secondary listing in Hong Kong.

The Nasdaq-listed company said it would offer 100 million Class A common stock to investors at a price of no more than HK $ 150 or $ 19.29. Final prices will be announced by August 6.

At HK $ 150 per share, Li Auto would raise HK $ 15 billion, or $ 1.93 billion.

Li Auto is continuing its listing despite a recent sell-off in Chinese tech stocks triggered by regulatory crackdowns affecting everything from food delivery to running.

Chinese electric vehicle manufacturers are trying to take advantage of the buzz around the industry to raise funds.

Li Auto’s rival Xpeng last month raised around $ 1.8 billion in a Hong Kong listing.

But Li Auto is also tapping into a trend of Chinese US-listed companies looking to raise funds closer to home. Alibaba, NetEase, and JD.com are among Chinese tech giants that have performed secondary listings.

Doing a secondary listing in Hong Kong also helps guard against some of the geopolitical risks that have impacted financial market regulation.

Earlier this year, the United States Securities and Exchange Commission passed rules that impose more stringent audit requirements on foreign companies listed in the United States.

And last month, the SEC also said it would require additional information from Chinese companies wishing to list on U.S. exchanges.

Li Auto said it plans to use the proceeds from its stock offering for research and development of future technologies and models, as well as expanding the production capacity and footprint of its companies. retail stores.

Competition in the Chinese electric vehicle market is becoming intense. Start-ups like Li Auto, Xpeng and Nio are competing with established players like BYD and Tesla as well as traditional car makers.

Li Auto said on Sunday that it delivered 8,589 Li One vehicles in July, a monthly record. The Li One SUV is the company’s only model on the market. It is a hybrid vehicle with a fuel tank to recharge the battery, extending the range by 180 kilometers by approximately 620 km (385.35 miles).


Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here