Chinese electric vehicle manufacturer Li Auto plans to attract about 11.8 billion Hong Kong dollars (1.5 billion US dollars) on Listing in Hong Kong. The car giant will set the price of 118 Hong Kong dollars (US $ 15.17) for each promotion, writes Bloomberg.
This amount will be about 3.2 percent below the closing price of Li Auto on the NASDAQ Exchange on August 5. The automaker will place 100 million shares on Listing in Hong Kong, setting the maximum price of 150 Hong Kong dollars (19.29 US dollars) a piece for retail investors. One American action Li AUTO is equal to two ordinary shares. Thus, the Chinese manufacturer will be able to press Tesla in the stock market.
The price has not yet been approved, as discussions inside the company continue.
Li Auto will be the second Chinese manufacturer of electric vehicles, trading in US Exchanges, which will include its securities in the stock exchange list in Hong Kong. Previously, his larger XPeng competitor did this, having gathered $ 2.1 billion on a double primary listing. Mainland China Corporations, who posted shares on American stock exchanges, want to gain a foothold in the stock market in Hong Kong for two main reasons – because of fear of being excluded from the listing of the US Exchange and for the sake of expanding the investor base.
Li Auto spend their campaign in Hong Kong in heavily time for the stock market of the city. The stability of prices for stocks threaten recent measures of Beijing, strongly limited the freedom of activity of educational and technological companies. In addition, the Chinese government stated that companies that have more than one million users will be conducted by cybersecurity check for inclusion in stock exchange lists abroad.
A year ago, Li Auto attracted about 1.3 billion dollars during an IPO in the United States. The company’s shares were sold at a price, more than three times higher than the initial price of $ 11.50. Such success was due to the fact that investors did high rates on the manufacturers of electrocars. The closing price of Li Auto shares in the USA August 5 amounted to $ 31.35.
Securities firms will be sold on Hong Kong’s exchanges on August 12. The sponsors of this listing are the investment banks Goldman Sachs Group and China International Capital, and the Swiss Holding UBS Group AG is a financial consultant.