China’s Li Auto shares fall 2.1% at HK debut, plans battery electric models, new factory By Reuters

© Reuters. People stand near the logo of Chinese electric vehicle (EV) maker Li Auto at a product launch event in Beijing, China May 25, 2021. REUTERS/Yilei Sun

(Reuters) -Chinese electric vehicle maker Li Auto shares slipped 2.1% below their offer price of HK$118 in the company’s trading debut at the Hong Kong Stock Exchange on Thursday.

The company raised $1.52 billion by pricing its stock at HK$118 each in its dual primary listing in the city. Li Auto is also listed in New York.

Hong Kong’s was flat in early trade. The weaker debut followed a 1.1% rise in New York-listed Li Auto shares on Wednesday.

At HK$118 each, the price represented a 3.2% discount to the level where the New York stock was trading before the Hong Kong deal was launched on Aug. 3.

Li Auto’s president Shen Yanan told reporters that it is internally discussing the possibility of issuing A-shares in mainland China.

It is developing battery electric vehicles in addition to its current extended range electric vehicle model, which uses a different powertrain, to expand its customer base, Shen said. The first battery electric model is expected to be sold in 2023, Shen said.

Li Auto plans to set up a new factory in Beijing to expand manufacturing capacity and to have more showrooms in shopping malls across Chinese cities to expand sales channels, Shen said.

The electric vehicle maker had aimed to raise more funds at its Hong Kong debut but the stock dropped 4% in the United States last Thursday before the price was finalised, which reduced the amount investors were willing to pay.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*