Chinese electric vehicle maker Li Auto to raise $2B in US stock offering

Chinese electric vehicle maker Li Auto stated Tuesday that it plans to raise $2 billion from U.S. traders via an "at-the-market" stock offering, in which share costs are decided on the time they're bought.

The funds will probably be spent to develop new applied sciences, together with for autonomous driving, and for the event of future fashions, the Beijing-based firm stated in a submitting with the Securities and Exchange Commission.

An organization elevating funds through an at-the-market offering will usually promote a chosen quantity of stock over time via funding banks at prevailing market costs. Li Auto stated that Goldman Sachs, UBS Securities, Barclays Capital, and the Hong Kong unit of China International Capital Corporation will probably be its brokers for the brand new stock offering.

Li Auto is one in all a number of Chinese electric vehicle corporations to have drawn consideration from U.S. traders in the final a number of years, together with rivals together with Nio and XPeng. Founded in 2015, the corporate specializes in upscale electric SUVs with so-called "range extenders", that are internal-combustion engines that act as turbines to recharge autos' batteries whereas driving.

While extra electric autos are bought in China than in another nation, there are nonetheless components of China the place EV chargers are comparatively scarce. A variety extender can supply reassurance for purchasers in these areas and for drivers elsewhere who aren't fairly prepared to go 100% electric.

Li's two SUV fashions, the midsize ONE and flagship L9, supply 188 km (about 117 miles) and 180 km (about 112 miles) of electric-only vary, respectively.

Li's U.S.-listed shares had been down about 3.3% in early buying and selling following the announcement.

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