Chinese Tesla rival Li Auto set to raise US$1.5 billion in Hong Kong IPO, surpassing its Nasdaq listing last year

Li Auto set the IPO price in Hong Kong at HK$118, representing a 3.2 per cent discount from its Thursday close in the US

A listing in Hong Kong enables US-listed Chinese companies to hedge against the risks of being delisted from the American exchange

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Li Auto will aim to raise HK$11.8 billion (US$1.5 billion), surpassing the amount that it raised in the US a year ago. Photo: Shutterstock

Published: 4:23pm, 6 Aug 2021Updated: 11:39am, 18 Aug 2021

Li Auto, the Chinese electric car maker backed by online delivery giant Meituan, has set the final price of its Hong Kong IPO at HK$118 per share, according to people familiar with the deal.

This will enable it to raise HK$11.8 billion (US$1.5 billion), surpassing the US$1.1 billion it raised on the Nasdaq exchange in the US a year ago.

Li Auto set its Hong Kong IPO price at a 3.2 per cent discount to its Thursday US closing price of US$31.35, two separate sources told the South China Morning Post. Each of its American depositary shares (ADS) represents two ordinary shares.

The Beijing-based start-up is issuing 100 million shares to investors, with an over-allotment option to sell up to 15 million more if there is strong enough demand. The retail portion of the offering, which closed to investors today, represents 10 per cent of all offered shares, while the rest is for international investors.

It will trade on the main board of the Hong Kong bourse under the stock code 2015, the year the company was founded. The trading debut is scheduled for August 12.

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