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

Chinese electric vehicle maker Li Automobile reported Tuesday that it options to increase $2 billion from U.S. traders by way of an “at-the-industry” inventory presenting, in which share price ranges are decided at the time they’re bought.

The cash will be expended to acquire new technologies, including for autonomous driving, and for the development of long run designs, the Beijing-centered enterprise reported in a filing with the Securities and Exchange Fee.

A company elevating funds by way of an at-the-market place featuring will commonly sell a designated total of inventory about time by means of investment decision banking companies at prevailing marketplace price ranges. Li Vehicle explained that Goldman Sachs, UBS Securities, Barclays Money, and the Hong Kong unit of China Global Money Company will be its brokers for the new inventory supplying.

Li Automobile is a single of various Chinese electrical car or truck firms to have drawn awareness from U.S. buyers in the past several several years, along with rivals which include Nio and XPeng. Founded in 2015, the enterprise specializes in upscale electric powered SUVs with so-referred to as “range extenders”, which are inner-combustion engines that act as generators to recharge vehicles’ batteries while driving.

Even though more electric automobiles are bought in China than in any other country, there are however pieces of China where by EV chargers are comparatively scarce. A array extender can give reassurance for clients in individuals locations and for motorists elsewhere who are not pretty prepared to go 100% electrical.

Li’s two SUV models, the midsize One and flagship L9, give 188 km (about 117 miles) and 180 km (about 112 miles) of electric-only selection, respectively.

Li’s U.S.-outlined shares ended up down about 3.3% in early buying and selling next the announcement.

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