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. 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 carefully observe one another. U.S.-listed shares of Li Auto closed 1% greater on Wednesday. Hong Kong-listed shares had 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 akin to Nio and Xpeng each have extra automobiles out there to shoppers.
Li Auto is making an attempt to reap the benefits of buyers’ pleasure across the electrical automobile area 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 Trade 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 can 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 accurately mirror the efficiency of U.S.-listed shares of Li Auto throughout Wednesday’s session.
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