Li Auto’s US IPO Gets Fully Subscribed

NIO’s domestic rival, Beijing-based electric vehicle startup Li Auto’s initial public offering in the US has been fully subscribed for a whopping $950 million, Reuters’ IFR reported.

Pandaily reported last week that Li Auto submitted its initial public offering prospectus on the US Securities and Exchange Commission (SEC) website on July 11 under the stock code “LI”. The initial plan was to raise $100 million with underwriters Goldman Sachs, Morgan Stanley, UBS Investment Bank, and CICC, the company said in its filing.

On July 25, Li Auto updated the prospectus with detailed information on fundraising. The company publicly announced the issuance of 95 million ADS shares at a price range of $8 to $10 per ADSs. Besides, the IPO underwriters have an oversubscription option for 14.25 million ADSs, according to the prospectus.

SEE ALSO: Chinese EV Manufacturer Li Auto Renews Prospectus with Issue Price, Hillhouse Capital Inclines to Invest

If the underwriters exert their oversubscription right of buying 14.25 million ADSs, with 95 million ADSs being fully subscribed, the Li Auto IPO will raise between $874 million and $1.093 billion at the price range mentioned above.

According to the issuance price, Li Auto’s total IPO financing will reach between $1.254 billion to $1.473 billion.

The company will be valued at $8 billion based on the mid-price range of $9 with its total equity after the IPO around 888 million ADSs. The value will reach $8.8 billion based on the capped price of $10 per ADSs, according to cnTechPost.

Li Auto aims to be listed on the Nasdaq Global Market this Friday, Pandaily cited IPO Zaozhidao on July 20.