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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 in the course of the 18th Guangzhou Worldwide Car Exhibition at China Import and Export Truthful Complicated on November 23, 2020 in China.

Li Zhihao | Visible China Group | Getty Photos

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

The Nasdaq-listed electrical carmaker bought 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 by way of a so-called twin major itemizing. Which means 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 trade are likely to carefully comply with one another. U.S.-listed shares of Li Auto closed 1% increased on Wednesday. Hong Kong-listed shares have 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 similar to Nio and Xpeng each have extra vehicles out there to shoppers.

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

Earlier this yr, the U.S. Securities and Change Fee adopted guidelines that impose stricter auditing necessities for overseas companies listed within the U.S. Corporations that fall afoul of the principles might be delisted.

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

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

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