Li Auto Inc. has raised $1.1 billion in its initial public offering in the USA, Bloomberg reported.
What Happened
The Chinese electrical cars manufacturer sold 95 million American depositary shares priced at $11.50 per on Wednesday — above its previously indicated range of $8 to $10. The IPO worth Li Automobile at roughly $10 billion about those conditions.
The shares will start trading Thursday under the symbol “LI” in the Nasdaq Stock Market.
Goldman Sachs Group Inc (NYSE: GS), Morgan Stanley (NYSE: MS), UBS Group AG (NYSE: UBS), and China International Capital Corporation Limited (OTC: CNICF) are serving as the underwriters for the offering.
Xiang Li, the CEO of the automaker will allegedly have 21% stake in the organization at the ending of this IPO, with 72.7% of the entire voting power.
The list is happening concurrently with a $380 million sale of stocks to investors, such as an affliate of this online shopping platform Meituan Dianping (OTC: MPNGY) along with TikTok parent firm ByteDance Ltd. Hillhouse Capital has also reportedly expressed interest in buying shares to the tune of $300 million in the IPO price.
Why It Matters
Li Auto sells SUVs priced between $21,000 and $70,000. It reported a net loss of $10.89 million for its first quarter, with annual earnings of $120.28 million. At exactly the same quarter this past year. the company had posted a net loss of $344 million, an indicator that its nearing growth, Bloomberg said.
This month, a different Chinese EV manufacturer Nio Inc (NYSE: NIO), that held its own IPO in September 2018, rallied to a record high and has run up almost 216% year-till-date.
A current debutant on the markets, Nikola Corp (NASDAQ: NKLA) skyrocketed following its record last month, also has clocked profits of 202% YTD. Elon Musk-led Tesla Inc (NASDAQ: TSLA) has soared 258% YTD.
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