The Beijing-based company raised $1.1 billion by offering 95 million American Depositary Shares priced at $11.50, above views for $8-$10. The pricing values Li Auto (LI) at about $10 billion.
Li Auto stock will start trading Thursday on the Nasdaq under the ticker “LI.”
Unlike many EV startups looking to go public, the company already produces and sells electric vehicles. The Li Auto IPO filing describes the company as the first to successfully commercialize extended-range electric vehicles in China.
The company began mass production of the Li One, a six-seat luxury electric SUV, in November 2019 and racked up more than 10,400 deliveries as of June. Unlike Nio which uses a contract manufacturer, Li Auto makes its own vehicles.
Like Nio and Tesla, Li Auto makes premium electric SUVs and is benefiting as governments and automakers promote emissionless technology.
The Li Auto IPO marks the second Chinese electric vehicle startup going public in the U.S. after Nio’s $1 billion IPO two years ago.
Electric Car Stocks
Shares of Tesla were down 0.7% at 1488 in premarket trading on the stock market today. Tesla stock has rallied massively in July but has moved sideways since reporting a fourth-straight profit. Nio stock fell 2.5% early Thursday and Nikola stock eased 2.5%.
Founded in 2015, Li Auto saw $40.2 million in revenue last year and a net loss of about $344.4 million, according to its IPO filing.
Lead underwriters on the Li Auto IPO include Goldman Sachs and Morgan Stanley.
Meanwhile, several other electric car stocks are waiting in the wings. Earlier this week, Karma Automotive said it could go public via a blank-check deal, adding to the list of companies going public that way.
Nikola debuted June 4 after merging with VectoIQ. Fisker plans to go public via a merger with Spartan Energy. Hyliion agreed to merge with Tortoise Acquisition (SHLL) and will trade under the ticker “HYLN.”
Find Aparna Narayanan on Twitter at @IBD_ANarayanan.
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