EV producer Li Auto plans $1.9 bln
Li Auto, a Meituan-sponsored Chinese language electrical car firm, has set its Hong Kong IPO at HK$150 per share. It’s permitting as much as US$1.9 billion in proceeds. This quantities to greater than the determine raised in its New York IPO a yr in the past.
Li Auto raised US$1.1 billion on the Nasdaq in July of final yr. Based on its prospectus, the Beijing start-up intends to supply 100 million shares. The utmost provide value represents a 14.5 per cent premium to its Nasdaq-listed American depositary shares (ADS), which had reached US$33.68 after a four-day successful run. Every Li Auto ADS is equal to 2 atypical shares.
If there may be substantial demand, there may be an overallotment choice to promote 15 million further shares.
The corporate started buying and selling on Hong Kong’s major market on August 12 underneath the ticker 2015. The Hong Kong public providing will begin as we speak and conclude on Friday. The ultimate provide value determine based mostly on the price of American depositary shares.
Li Auto and Xpeng
The Hong Kong IPO comes on the heels of file month-to-month deliveries from Li Auto and Xpeng in July. Electrical automobile producers place themselves to capitalize on surging gross sales on the earth’s largest EV market. The corporate bought a complete of 8,589 Li-One SUVs. It’s the first and sole EV to hit the market, a 251.3% yr on yr enhance and an 11.4 per cent enhance over June.
Final month, Xpeng, which lists each the New York and Hong Kong inventory exchanges, delivered 8,040 autos, a 228 per cent enhance yr on yr and a 22 per cent enhance month on month.
Month-to-month gross sales of 10,000 items shall be essential to intention for China’s EV start-ups like Xpeng and Li Auto. As a result of after reaching that stage, a carmaker will regard as a major participant within the car market.
Nonetheless, Li Auto’s IPO buyers should take into account that the corporate has but to show a revenue. Li Auto’s internet loss elevated to 360 million yuan (US$54.9 million) for the three months ending March, up from 77.1 million yuan in the identical interval final yr. Its internet loss for your entire 2020 fiscal yr was 151.7 million yuan.
Based on trade insiders, the three major Chinese language smart-EV corporations that may rival Elon Musk’s Tesla on the mainland are Li Auto, Xpeng, and NIO. Xpeng was the primary of the three to finish a twin major providing in Hong Kong final month. They generated a complete of US$1.8 billion. NIO, which headquarter is in Shanghai, is basically anticipated to comply with go well with.
Shares traded in Hong Kong are absolutely fungible with these bought in the USA, and Li Auto’s ADS holders can likewise change them for shares traded in Hong Kong.
After a gradual July wherein solely 17 offers full, a profitable IPO by Li Auto would re-energize the Hong Kong fundraising market. Amassing solely US$2.7 billion, a 62% lower yr on yr, based on Refinitiv information. The sale is co-sponsored by Goldman Sachs and CICC, with UBS serving because the monetary adviser.
Li Auto intends to take a position the web proceeds of its IPO on analysis and improvement, together with fast-charging applied sciences, autonomous driving applied sciences, retail retailer growth, and advertising.