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Chinese Electric Vehicle Maker Li Auto Sets to Raise Up to USD1.1 Billion in Nasdaq IPO

July 30, 2020 5:32 pm

Beijing (PingWest)- Chinese electric vehicle maker Li Auto, which is backed by Chinese online services delivery giant Meituan Dianping,, has set the price for its American depositary receipts at USD11.5 each in its initial public offering on Nasdaq.

The company initially aimed to sell these shares at between USD8 and USD10 per share.

The shares of Li Auto will start trading on Nasdaq under symbol from Thursday, Goldman Sachs, Morgan Stanley, UBS and CICC were the underwriters for the IPO.

Li Auto will issue 95 million shares in total that will raise about USD1.1 billion for the IPO.

The company said it would use most of the capital raised from IPO to support research and development of new products. It is building Li ONE extended-range electric sport-utility vehicles in China’s eastern city of Changzhou.

As of the end of the June, Li Auto sold about 10,400 units of Li One, and it plans to launch new premium SUVs that cost USD21,000 to USD70,000 in 2022, the company said in a regulatory filing.

Unlike rival Nio’spure battery electric vehicles, Li ONE allows drivers to charge their cars with electricity or gasoline. Li Auto has 21 showrooms in China, and it aims to operate 60 by the end of this year.

Li auto aims to set a biggest fundraising of a Chinese company on US exchanges since December 2018 when Tencent Musci Entertainment Group raised USD1.07 billion and NIO raised USD1.15 billion offer in September 2018,

Founded in 2015 by serial entrepreneur Li Xiang, Li Auto was formerly known as CHJ Automotive, the company has yet to turn a profit. It reported a pure battery electric vehicles, Li ONE allows drivers to charge their cars with electricity or gasoline. Li Auto has 21 showrooms in China, and it aims to operate 60 by the end of this year.

Li auto aims to set a biggest fundraising of a Chinese company on US exchanges since December 2018 when Tencent Musci Entertainment Group raised USD1.07 billion and NIO raised USD1.15 billion offer in September 2018,

Founded in 2015 by serial entrepreneur Li Xiang, Li Auto was formerly known as CHJ Automotive, the company has yet to turn a profit. It reported a net loss of CNY77 million in the first quarter of 2020.

Li also founded car internet platform Autohome, which now has a market capitalisation of over USD10 billion on the New York Stock Exchange, which boost investors’ confidence on his new venture Li Auto.

Li Auto’s IPO come at the time when U.S.-listed Chinese companies are facing tightened scrutiny and more strict audit requirements from U.S. regulators. U.S investors’ sentiment toward Chinese firms blurred after the Luckin Coffee’s accounting scandal exposed, Li auto’s shares could be underestimated as a result.

The IPO values Li Auto at around USD10 billion. Private equity firm Hillhouse Capital agreed to invest USD300 million in the company as part of the IPO, the company said in a regulatory filing.