China’s Li Auto to raise up to $1.93 billion from Hong Kong listing

A Li Xiang One hybrid SUV is on show in the course of the 18th Guangzhou Worldwide Car Exhibition at China Import and Export Truthful Advanced on November 23, 2020 in China.

Li Zhihao | Visible China Group | Getty Photos

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

The Nasdaq-listed firm stated it can provide 100 million class A peculiar shares to traders at a worth of not more than 150 Hong Kong {dollars} or $19.29. Last pricing shall 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 current sell-off in Chinese language expertise shares that was triggered by regulatory crackdowns hitting every little thing from meals supply to trip hailing.

Chinese language electrical automobile makers are attempting to make the most of the joy across the business to lift cash.

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

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

Doing a secondary itemizing in Hong Kong additionally helps to hedge towards among 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 companies 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 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 automobile market is getting intense. Begin-ups like Li Auto, Xpeng and Nio are competing towards 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 document. The Li One SUV is the corporate’s solely mannequin in the marketplace. It is a hybrid automobile 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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