Beijing-based Food delivery giant Meituan Dianping backed Chinese electric vehicle manufacturer Li Auto Inc., had been working out a US initial public offering in a bid to raise as many as $950 million which in effect could mark up one of the biggest US public listings by a Chinese company this year.
Besides, according to Li Auto Inc.’s updated prospectus filed in the US SEC (Securities and Exchange Commission) on Friday, the five-year-old Chinese e-vehicle manufacturer, formerly known as CHJ Automotive, would be selling 95 million ADDS (American Depository Shares) at a target price between $8 to $10 apiece, while each ADDS would be representing two CLASS A ordinary shares.
Li Auto IPO to gauge US investors’ appetite for Chinese companies, suggested analysts
On top of that, the Chinese automaker had also added at its security filing with the US SEC that the Hong Kong-based private equity firm Hillhouse Capital had been planning to purchase at least $300 million worth of shares in the initial offering, though a slew of Wall St.
analysts expressed scepticism over the initial offering adding that the Chinese e-vehicle maker’s IPO would gauge the US investors’ appetite for Chinese companies amid a latest round of escalation in Sino-US tension.
In point of fact, despite a darkening outlook in the Sino-US trade frontier alongside a growing acrimony among the US investors following the holocaust of Luckin Coffee, Li Auto and others had continued to hold forth towards a US listing, while Li Auto’s Chinese rival, Xpeng has also been looking towards a US public listing later this year, said the sources.
Aside from that, if the Li Auto IPO could generate the targeted total of at least $950 million at its US public listing, it would overtake the $510 IPO by the Chinese cloud service provider Kingsoft Cloud, which had been the largest US listing by a Chinese company thus far this year.