By P.R. Venkat
Chinese electric vehicle maker Li Auto Inc. plans to raise as much as 15 billion Hong Kong dollars (US$1.93 billion) through a share offering in Hong Kong.
The company plans to sell 100 million shares and has set a maximum price of HK$150 each for the stock that is expected to start trading on the Hong Kong exchange from Aug.12, Li Auto said Tuesday.
Li Auto is following its fellow EV-maker XPeng Inc. which also listed on the Hong Kong exchange last month to raise US$1.8 billion. Xpeng listed on the New York Stock Exchange last year.
Many big U.S.-listed Chinese companies, including Alibaba Group Holding Ltd. and JD.com Inc., have in recent years obtained Hong Kong listings, partly as a hedge against risks arising from prolonged U.S.-China tensions.
Li Auto had said in its draft prospectus that it will use the funds raised from the offering for research and development of battery technology as well as intelligent vehicles and autonomous driving technologies. It will also expand the number of charging points available in its current markets.
The company that is listed on the Nasdaq counts online retailer and food-delivery platform provider Meituan among its investors holding a 13.2% equity.
Goldman Sachs, China International Capital Corp. and UBS are advising Li Auto on the offering.
Li Auto had posted a net loss of US$276.7 million on revenue of US$1.44 billion in 2020.
Write to P.R. Venkat at firstname.lastname@example.org
(END) Dow Jones Newswires