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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 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 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 by way of a so-called twin main itemizing. Which means will probably be topic to the foundations 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 carefully observe 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 available on the market, an SUV it calls Li One. Its rivals equivalent to Nio and Xpeng each have extra automobiles obtainable to shoppers.

Li Auto is attempting to make the most of buyers’ pleasure across the electrical automobile area by elevating cash, but it surely may be attempting to hedge in opposition to geopolitical danger as U.S.-China tensions proceed.

Earlier this 12 months, the U.S. Securities and Trade Fee adopted guidelines that impose stricter auditing necessities for overseas companies listed within the U.S. Corporations that fall afoul of the foundations may very well be delisted.

Li Auto stated it is going to 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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