Tesla rival Li Auto targets US$1.9 billion in Hong Kong IPO as Chinese electric car sales soar

Li Auto has set the maximum Hong Kong offer price at HK$150 per share, a 15 per cent premium to its American depositary shares

If demand is sufficient, Li Auto could raise far more than it did in its New York IPO a year ago

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Li Auto sold 8,589 of its Li One sports utility vehicles (SUVs) in July, a huge jump from a year earlier. Shutterstock

Published: 11:16am, 3 Aug 2021Updated: 10:49pm, 3 Aug 2021

Li Auto, the Chinese electric car maker backed by online delivery giant Meituan, has set the maximum price of its Hong Kong initial public offering at HK$150 (US$19.29) per share, which would enable it to raise up to US$1.9 billion and exceed the amount raised in its New York IPO a year ago.

Last July, Li Auto raised US$1.1 billion on the Nasdaq. The Beijing start-up plans to sell 100 million shares, according to its prospectus. The maximum offer price represents a 14.5 per cent premium to its American depositary shares (ADS) listed on the Nasdaq, after a four-day winning streak lifted them to US$33.68. Each Li Auto ADS represents two ordinary shares.

There is an overallotment option to sell 15 million more shares if there is strong demand.

Li Auto is scheduled to start trading on Hong Kong’s main board on August 12, under the stock code 2015. The Hong Kong public offering will begin today and end on Friday, when the final offer price will also be determined, taking its lead from the American depositary shares price.

The Hong Kong IPO comes after Li Auto and Xpeng, another Chinese Tesla rival, reported record monthly deliveries for July, as electric car makers position themselves to take advantage of surging sales in the world’s largest EV market.

Li Auto sold 8,589 of its Li One sports utility vehicles (SUVs), its first and only EV launched to the market so far, a jump of 251.3 per cent year on year and 11.4 per cent higher compared to June.