Li Auto to Sell Up to $2B in ADS Offering
Li Auto announced on Tuesday that it will sell American depositary shares (ADSs) with a total amount of no more than $2 billion through an at-the-market equity offering program on the Nasdaq Global Select Market, and each of the ADSs represent two Class A ordinary shares.
These ADSs will be sold through Goldman Sachs (Asia) L.L.C., UBS Securities LLC, Barclays Capital Inc., and China International Capital Corporation Hong Kong Securities Limited as sales agents.
The net proceeds from this release will be used to study the next generation of electric vehicle technology, including BEV, intelligent cockpits and automated driving technology, to develop future platforms and build automotive models, as well as to meet working capital requirements and general enterprise uses.
Li Auto now has two models: the Li ONE and the L9. The firm delivered 11,496 units of the Li ONE in May, an increase of 165.9% compared with May 2021. Since delivery, the cumulative delivery volume of the Li ONE has reached 171,467 vehicles.
The L9 is an SUV model that was released on June 22, with a national unified retail price of 459,800 yuan ($68,602). Earlier, Li Auto announced that more than 30,000 subscribers paid 5,000 yuan to pre-book L9 within 72 hours. This also means that the L9’s order quantity has exceeded 30,000 vehicles.
Li Xiang, the founder of Li Auto, once proposed that by 2025, Li Auto will occupy a 20% market share. He predicted that more than 8 million smart electric vehicles will be sold in China in 2025, which means that the sales target of Li Auto is 1.6 million vehicles.
SEE ALSO: Li Auto Pure EV Might Use CATL’s Kirin Battery
At a financial report conference call for the first quarter of 2022, Li Xiang introduced the product strategy of Li Auto in detail. He said that the product portfolio of Li Auto is similar to the iPhone, and one top-selling product for every 100,000 yuan will be launched in the price range from 200,000 yuan to 500,000 yuan. Li Xiang said he believes that there is a wide market space for the firm to develop.
