Chinese EV company Li Auto filed a U.S. IPO and will trade on the NASDAQ with the ticker "$LI" this Friday. The company is expected to raise $950m by selling 95 million shares priced between $8 and $10. PE firm Hillhouse Capital has committed $300m into the IPO. Li will raise $380m from a concurrent private placement of shares from existing investors, including food delivery company Meituan Dianping and social media company ByteDance.
- Electric vehicle companies, in general, have rushed to go public amid skyrocketing consumer and investor interest. Chinese companies listed on Wall Street have more than doubled this year despite increasing U.S.-China tension.
- Chinese EV company NIO went public in the U.S. in 2017 at $6.26 per share, and now trades at $11.67 per share, almost double its IPO price. By comparison, NIO shares were trading at a 52-week-low ($1.19 per share) on Oct. 2, 2019. In April, NIO secured $1b in funding from Chinese companies including CMG-SDIC Capital, and Hefei City Construction and Investment Holding Group.
- China's WM Motor Technology reportedly is considering a Shanghai IPO this year and Hozon New Energy recently announced its plans for a Shanghai IPO for next year. In 2019, electric vehicle sales in China declined 4% from the previous year down to 1.21 million vehicles.
- In U.S. markets, Tesla stock ($TSLA) jumped 5% after its Q2 2020 earnings call last week showed a fourth straight quarterly profit and its first full year of profitability, making it eligible to be listed on the S&P 500. Phoenix-based Nikola was listed on the Nasdaq this year via a SPAC reverse merger with VectoIQ Acquisition Corp. Los Angeles-based Fisker is reportedly in talks to go public via a SPAC reverse merger as well as through Spartan Energy Acquisition.