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Li Auto shares off to muted begin in $1.5 billion Hong Kong debut

A Li Xiang One hybrid SUV is on show throughout the 18th Guangzhou Worldwide Vehicle Exhibition at China Import and Export Honest Advanced on November 23, 2020 in China.

Li Zhihao | Visible China Group | Getty Pictures

GUANGZHOU, China — Li Auto shares in Hong Kong had been off to a muted begin of their buying and selling debut on Thursday.

The Nasdaq-listed electrical carmaker offered shares at 118 Hong Kong {dollars} every, elevating the corporate 11.6 billion Hong Kong {dollars} ($1.49 billion).

Li Auto has adopted rival Xpeng in elevating cash in Hong Kong through a so-called twin main itemizing. Meaning it is going to be topic to the principles and oversight of each U.S. and Hong Kong regulators, which is not the case with a secondary itemizing.

If an organization is listed in two places, the shares on every inventory change are likely to intently comply with one another. U.S.-listed shares of Li Auto closed 1% increased on Wednesday. Hong Kong-listed shares had been barely decrease amid a broader dip in Asian markets Thursday.

Li Auto presently has one mannequin in the marketplace, an SUV it calls Li One. Its rivals reminiscent of Nio and Xpeng each have extra automobiles out there to customers.

Li Auto is making an attempt to benefit from buyers’ pleasure across the electrical car house by elevating cash, however it may be making an attempt to hedge towards geopolitical danger as U.S.-China tensions proceed.

Earlier this 12 months, the U.S. Securities and Alternate Fee adopted guidelines that impose stricter auditing necessities for overseas corporations listed within the U.S. Firms that fall afoul of the principles might be delisted.

Li Auto mentioned it would use the proceeds of the Hong Kong itemizing in numerous areas together with launching new fashions, increasing manufacturing capability and opening extra retail shops.

Correction: This story has been up to date to appropriately mirror the efficiency of U.S.-listed shares of Li Auto throughout Wednesday’s session.


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