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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 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 by way of a so-called twin main itemizing. Which means it will likely 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 inclined to carefully observe one another. U.S.-listed shares of Li Auto closed flat on Wednesday and Hong Kong-listed shares had been additionally flat in early afternoon commerce.

Li Auto presently has one mannequin in the marketplace, an SUV it calls Li One. Its rivals equivalent to Nio and Xpeng each have extra vehicles accessible to shoppers.

Li Auto is attempting to benefit from buyers’ pleasure across the electrical automobile area by elevating cash, nevertheless it may be attempting 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. Firms that fall afoul of the principles may very well be delisted.

Li Auto stated 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.

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