Benzinga | Aug 3, 2021 12:23AM EDT

Li Auto Seeks To Raise $1.9B In Hong Kong Listing After Homegrown Peer Xpeng's Debut

U.S.-listed Chinese electric vehicle maker Li Auto Inc (NASDAQ:LI) is looking to raise as much as $1.9 billion in its Hong Kong dual primary listing, the company said in a statement.

What Happened: The Beijing-based electric vehicle maker is offering 100 million shares for as much as HK$150 ($19.29) each and the company plans to use the funds for research and development and to expand its autonomous driving technologies, production capacity, and store expansion.

The company said it will offer up to 10 million shares to investors in Hong Kong and 90 million shares to global investors.

Why It Matters: Li Auto's plan for a dual listing comes close on the heels of homegrown rival and U.S.-listed Xpeng Inc (NYSE:XPEV) raising $1.8 billion for its trading debut on the Hong Kong exchange earlier this month.

Li Auto has managed to secure a firm position in China's fast-growing electric vehicle race -- with just one model on sale currently, unlike rivals such as Tesla Inc (NASDAQ:TSLA) with a bigger portfolio of cars or homegrown peers such as Nio Inc (NYSE:NIO), Xpeng, and BYD Co (OTC:BYDDF) who are quickly ramping up their offerings.

Li One is the company's first model that went on sale in November 2019. Beyond Li One, the electric vehicle maker aims to launch more electric vehicles.

See Also: Nio July Deliveries Surge 125% But Fall Below Those Of Rivals Xpeng, Li: What You Should Know

Price Action: Li Auto shares, which have more than doubled since it went public in New York last year, have risen about 4% so far in 2021. Shares closed 0.87% higher at $33.68 on Monday.

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Photo: Courtesy of Li Auto