Chinese EV Maker Li Auto Announces USD1.9bn Hong Kong IPO Plan

BY  
Seneca ESG  
- August 4, 2021

Chinese electric vehicle (EV) startup Li Auto announced on August 3 that it aimed to raise about HKD15bn (USD1.93bn) in an IPO in Hong Kong, according to Reuters on the same day. This would be the startup’s secondary listing after raising USD1.09bn in Nasdaq in July 2020. According to the prospectus, the company planned to issue 100m shares, HKD150 per share at most. The prospectus also permitted an over-allotment option to sell another 15m shares within 30 days after the IPO, potentially bringing the total amount up to HKD17.25bn.

The IPO plan came amid the outperformance of Li Auto’s EV sales. According to the EV maker’s data released on August 1, the company sold over 8,589 of its Li ONE SUV in July, its only EV model, increasing 251% YoY and 11.4% MoM. During the first seven months of this year, Li Auto has delivered 38,743 cars, pushing the accumulated sales volume up to 72,340 units since the publishing of the model. In addition, Li Auto is accelerating the deployment of its retail network. As of July 31, the startup operated 109 retail centers across the country, covering 67 cities, with a target of 200 centers in over 100 cities by the end of 2021.

In addition to Li Auto, other Chinese EV startups have also performed well. One of Li Auto’s rivals, Xpeng , just went public in Hong Kong on July 7 via a dual-primary listing mechanism, and its July sales increased 228% YoY to 8,040 EVs, the highest in history. Another EV manufacturer, NIO , is now preparing for the secondary listing in Hong Kong. The combined sales of NIO’s ES8 and ES6 electric SUVs jumped to 7,931 units in July with a 124.5% YoY growth rate. The significant growth in sales of the three startups reflects Chinese consumers’ increasing support for domestic EV brands. According to the relative news, Xpeng and Li Auto are planning for new models, while NIO is developing a sub-brand in a year. However, in 1Q21, NIO, Li Auto, and Xpeng reported a loss of RMB450m, RMB360m, and RMB790m, respectively, though they all had achieved positive gross profits.

Sources:

https://www.reuters.com/technology/chinese-ev-manufacturer-li-auto-plans-19-bln-hong-kong-listing-2021-08-03/

https://new.qq.com/rain/a/20210801A0BAL600

https://new.qq.com/omn/20210717/20210717A04ML600.html

https://www.reuters.com/business/autos-transportation/chinas-electric-vehicle-makers-report-strong-july-sales-2021-08-02/

https://www.reuters.com/world/china/chinese-ev-maker-xpeng-eyes-global-market-after-18-bln-hk-listing-2021-07-07/

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