EV Maker Li Auto Raises $1.5 Billion in Hong Kong Listing
Li Auto Said to Guide Pricing Hong Kong Listing at HK$118 Each
(Bloomberg) -- Chinese electric vehicle maker Li Auto Inc. has raised HK$11.8 billion ($1.5 billion) in its Hong Kong listing, adding to the cohort of U.S.-traded mainland companies selling shares in the Asian financial hub.
Li Auto priced 100 million shares at HK$118 each, it said in a statement to the city’s stock exchange on Friday. The price represents a discount of about 3.2% to its last close on the Nasdaq on Thursday. The carmaker had set a maximum price of HK$150 apiece for the portion reserved for retail investors. One of its American depositary shares is equal to two ordinary shares.
Li Auto will be the second U.S.-traded Chinese EV maker to list in Hong Kong after larger rival XPeng Inc. raised $2.1 billion in a dual primary listing in the city in June. Mainland firms listed stateside have been seeking trading footholds in Hong Kong as a way to hedge against the risk of being delisted from American exchanges as well as broadening their investor base.
The Hong Kong offering by Li Auto is happening at a tumultuous time for stocks in the city, following a series of moves by Beijing to rein in firms in sectors such as technology and education. The government has also said companies with over 1 million users’ data will need to submit to a cybersecurity review to list overseas.
Li Auto raised about $1.3 billion in its U.S. initial public offering a year ago. Its shares have traded at more than three times the offer price of $11.50, riding on investor enthusiasm for EV makers. The stock closed at $31.35 on Thursday.
The carmaker plans to use the proceeds from the offering to fund the research and development, infrastructure expansion and marketing and promotion as well as general corporate purposes.
The company’s shares are set to start trading in Hong Kong on Aug. 12. Goldman Sachs Group Inc. and China International Capital Corp. are joint sponsors for Li Auto’s Hong Kong listing, while UBS Group AG is the financial adviser.
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