Li Auto Disappoints in Hong Kong Debut, but Moves Forward With Big Plans
By Gina Lee
Investing.com – Chinese electric vehicle maker Li Auto Inc. (HK:2015) made a disappointing entry to the Hong Kong Stock Exchange, with shares not exceeding their offer price of HK$118.
Li Auto’s Hong Kong shares were steady at HK$118 ($15.17) by 12:37 AM ET (4:37 AM GMT).
However, the company raised $1.52 billion in its dual primary listing in the city, following a debut in New York in 2020 that raised around $1.3 billion. It had hoped to raise more, but a 4% drop in its U.S shares (NASDAQ:LI) last Thursday, before the offer price was determined, reduced the amount investors were willing to pay.
The proceeds from the Hong Kong offering will be used for research and development, marketing and promotion, infrastructure expansion and general corporate purposes.
Li Auto is also internally discussing the possibility of issuing A-shares in mainland China, president and executive director Yanan Shen told the media.
Meanwhile, the company plans to set up a new factory in Beijing to expand its manufacturing capacity and have more showrooms in shopping malls across China to expand sales channels. It is also developing battery electric vehicles in addition to its current extended-range electric vehicle model to expand its customer base, said Shen, with the first battery-electric model expected to be sold in 2023.
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