Li Auto shares off to muted start in $1.5 billion Hong Kong debut

A Li Xiang 1 hybrid SUV is on show all through the 18th Guangzhou International Auto Exhibition at China Import and Export Good Advanced on November 23, 2020 in China.

Li Zhihao | Visual China Team | Getty Photos

GUANGZHOU, China — Li Vehicle shares in Hong Kong ended up off to a muted start in their trading debut on Thursday.

The Nasdaq-shown electric carmaker sold shares at 118 Hong Kong dollars every single, elevating the enterprise 11.6 billion Hong Kong dollars ($1.49 billion).

Li Vehicle has adopted rival Xpeng in boosting dollars in Hong Kong by way of a so-called twin most important listing. That suggests it will be issue to the procedures and oversight of both equally U.S. and Hong Kong regulators, which is not the scenario with a secondary listing.

If a firm is outlined in two destinations, the shares on just about every inventory exchange tend to closely comply with just about every other. U.S.-mentioned shares of Li Car shut 1% increased on Wednesday. Hong Kong-mentioned shares ended up a little bit decreased amid a broader dip in Asian markets Thursday.

Li Vehicle at this time has just one product on the market place, an SUV it calls Li A single. Its rivals these types of as Nio and Xpeng both equally have much more vehicles offered to buyers.

Li Auto is attempting to get gain of investors’ enjoyment all-around the electric powered vehicle area by boosting cash, but it could also be seeking to hedge in opposition to geopolitical hazard as U.S.-China tensions continue.

Before this yr, the U.S. Securities and Trade Commission adopted rules that impose stricter auditing necessities for international companies detailed in the U.S. Companies that fall afoul of the principles could be delisted.

Li Vehicle claimed it will use the proceeds of the Hong Kong listing in several regions including launching new versions, increasing manufacturing capacity and opening extra retail outlets.

Correction: This tale has been up to date to accurately mirror the effectiveness of U.S.-stated shares of Li Automobile throughout Wednesday’s session.