22.4 C
New York
Thursday, September 16, 2021
AutosChina's Li Auto to lift as much as $1.93 billion from Hong...

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

Must read


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

Li Zhihao | Visual China Group | Getty Images

GUANGZHOU, China — Chinese 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 can supply 100 million class A unusual shares to traders at a value of not more than 150 Hong Kong {dollars} or $19.29. Final pricing can be introduced by Aug. 6.

At 150 Hong Kong {dollars} per share, Li Auto would increase 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 expertise shares that was triggered by regulatory crackdowns hitting all the things from meals supply to experience hailing.

Chinese electrical car makers are attempting to benefit from the joy across the trade to lift cash.

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

But Li Auto can be tapping right into a pattern of U.S.-listed Chinese firms seeking to increase cash nearer to residence. Alibaba, NetEase and JD.com are amongst China’s expertise 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. Those necessities carry the specter of delisting for firms that run afoul of the principles.

And final month, the SEC also said it will require additional disclosures from Chinese firms 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 improvement into applied sciences and future fashions, in addition to increasing manufacturing capability and its retail retailer footprint.

Competition within the Chinese electrical car market is getting intense. Start-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 available on the market. It’s 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).



Source link

More articles

Latest article