(Reuters) – Chinese electric vehicle maker Li Auto shares slipped 2.1% below their offer price of HK$118 in the company’s trading debut at the Hong Kong Stock Exchange on Thursday. The company raised $1.52 billion by pricing its stock at HK$118 each in its dual primary listing in the city. Li Auto is also listed […]
Li Auto Shares Drop 2.1% in Hong Kong Debut Amid Expansion Plans
(Reuters) – Chinese electric vehicle maker Li Auto shares slipped 2.1% below their offer price of HK$118 in the company’s trading debut at the Hong Kong Stock Exchange on Thursday.
The company raised $1.52 billion by pricing its stock at HK$118 each in its dual primary listing in the city. Li Auto is also listed in New York.
Hong Kong’s Hang Seng Index was flat in early trade. The weaker debut followed a 1.1% rise in New York-listed Li Auto shares on Wednesday.
At HK$118 each, the price represented a 3.2% discount to the level where the New York stock was trading before the Hong Kong deal was launched on Aug. 3.
Li Auto’s president Shen Yanan told reporters that it is internally discussing the possibility of issuing A-shares in mainland China.
It is developing battery electric vehicles in addition to its current extended range electric vehicle model, which uses a different powertrain, to expand its customer base, Shen said. The first battery electric model is expected to be sold in 2023, Shen said.
Li Auto plans to set up a new factory in Beijing to expand manufacturing capacity and to have more showrooms in shopping malls across Chinese cities to expand sales channels, Shen said.
The electric vehicle maker had aimed to raise more funds at its Hong Kong debut but the stock dropped 4% in the United States last Thursday before the price was finalised, which reduced the amount investors were willing to pay.
(Reporting by Donny Kwok and Scott Murdoch in Hong Kong, and Yilei Sun in Beijing; Editing by Ana Nicolaci da Costa)
