Chinese auto maker Li Auto to raise $1.52 B in Hong Kong IPO: sources


HONG KONG, Aug 6 - Chinese auto maker Li Auto is sourcing the opportunity to raise $1.52 billion in its dual primary listing in Hong Kong at HK $118 a share, said three sources with direct knowledge of the matter.

The offer, which was flagged to investors, is at a discount to the $31.35 closing price of the company's American depository notes in the United States on Thursday.

Li Auto declined to comment. The sources can't be found, since the information has not yet been made publicly available.

The deal follows that of rival Xpeng Inc., which raised $1.8 billion in dual primary listing in late June.

Li Auto is selling 100 million shares in the deal, launched on Tuesday in Hong Kong.

Li Auto shares fell 4% on Thursday but are up 8.84% so far in 2021.

The company has a so-called greenshoe option to sell further 15 million shares which could raise an additional $227.5 million that would take the total amount of the deal to $1.74 billion.

The EV maker chose a secondary listing rather than a dual primary listing as it has been listed in New York for less than two years.

Under Hong Kong rules, a secondary listing requires at least two years of good financial compliance for another quality exchange.

Li auto said it delivered 8,589 of its Li ONE SUVs last month, an increase of about 251%.

The shares are due to start trading in Hong Kong on Thursday.