A Li Xiang One hybrid SUV is on display all through the 18th Guangzhou International Automobile Exhibition at China Import and Export Good Complicated on November 23, 2020 in China.
Li Zhihao | Visual China Group | Getty Photographs
GUANGZHOU, China — Chinese electrical car or truck start off-up Li Car strategies to raise close to $1.93 billion in a Hong Kong secondary listing.
The Nasdaq-shown firm stated it will give 100 million course A everyday shares to traders at a price of no much more than 150 Hong Kong dollars or $19.29. Remaining pricing will be announced by Aug. 6.
At 150 Hong Kong bucks for each share, Li Automobile would raise 15 billion Hong Kong pounds or $1.93 billion.
Li Automobile is pushing forward with the listing in spite of a recent offer-off in Chinese technology shares that was induced by regulatory crackdowns hitting anything from foods supply to experience hailing.
Chinese electrical car makers are striving to consider edge of the excitement all around the sector to increase money.
Final month, Li Auto rival Xpeng raised all-around $1.8 billion in a Hong Kong listing.
But Li Vehicle is also tapping into a craze of U.S.-listed Chinese businesses on the lookout to increase dollars closer to property. Alibaba, NetEase and JD.com are amongst China’s engineering giants that have carried out secondary listings.
Performing a secondary listing in Hong Kong also assists to hedge from some of the geopolitical threat that has spilled in excess of into economical current market regulation.
Earlier this calendar year, the U.S. Securities and Exchange Commission adopted rules that impose stricter auditing needs for overseas corporations outlined in the U.S. People prerequisites have the risk of delisting for businesses that run afoul of the policies.
And very last thirty day period, the SEC also explained it will demand extra disclosures from Chinese organizations hunting to list on U.S. exchanges.
Li Automobile stated that it designs to use the proceeds of its share giving for analysis and improvement into systems and foreseeable future types, as nicely as expanding creation ability and its retail retail store footprint.
Competition in the Chinese electric powered vehicle industry is getting rigorous. Start out-ups like Li Vehicle, Xpeng and Nio are competing versus proven players like BYD and Tesla as perfectly as standard automakers.
Li Vehicle reported Sunday it sent 8,589 Li One vehicles in July, a every month file. The Li Just one SUV is the company’s only product on the market. It is really a hybrid car that arrives with a gas tank for charging the battery, extending the 180-kilometer driving range by about 620 km (385.35 miles).