Chinese Electric-Vehicle Maker Li Auto Shares Jump in Debut

Li Auto shares jumped in their first day of trading after the Chinese electric-vehicle maker raised $1.47 billion in its IPO.
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Li Auto  (LI)  shares spiked Thursday in their trading debut on the Nasdaq after the Chinese electric-vehicle maker raised $1.47 billion in its initial public offering.

The company had priced 95 million American depositary shares at $11.50. The underwriters have a 30-day option on 14.25 million more ADSs. Each ADS represents two Class A ordinary shares.

Concurrent with the offering, current Li Auto holders have agreed to buy $380 million of shares from the company.

The company's shares at last check were up 43% to $16.42.

Li Auto’s first model, the Li ONE, is a large, six-seat premium electric SUV “equipped with a range extension system and cutting-edge smart vehicle solutions,” the company said in its prospectus.

It started volume production of the Li ONE in November and delivered more than 10,400 of them by the end of June. The SUVs in China are priced at $21,000 to $70,000.

The Beijing electric-SUV producer is the largest Chinese company to debut on a U.S. exchange so far this year, according to the South China Morning Post, surpassing the $510 million that was raised by Kingsoft Cloud. KC

The offering is expected to close on Aug. 3.

Bookrunners for the deal include China International Capital, Goldman Sachs, Morgan Stanley and UBS. 

The current holders participating in the $380 million placement include Meituan Dianping, which, through an affiliate, owns about 14.5% of the company, and ByteDance, the parent of the popular Chinese social media app Tiktok. 

Li Auto's founder, chairman and chief executive, Xiang Li, holds an issue of Class B ordinary shares. If the underwriters exercise their option, the Class B shares will give the executive about 72.7% of the voting power within the company. 

Li Auto meets the Securities and Exchange Commission's definition of an emerging growth company, making it eligible for reduced public-company reporting requirements.