Li Auto, which manufactures smart electric SUVs in China, announced terms for its IPO on Friday.
The Beijing, China-based company plans to raise $855 million by offering 95 million ADSs at a price range of $8 to $10. New investor Hillhouse Capital intends to purchase $300 million worth of ADSs in the offering, and the company plans to raise an additional $380 million in a concurrent private placement. At the midpoint of the proposed range, Li Auto would command a fully diluted market value of $7.9 billion.
The company designs, develops, manufactures, and sells premium smart electric SUVs. It states that it is the first to successfully commercialize extended-range electric vehicles in China. It started the volume production of its first model, Li ONE, in November 2019 and has delivered over 10,400 units as of June 30, 2020.
Li Auto was founded in 2015 and booked $162 million in sales for the 12 months ended March 31, 2020. It plans to list on the Nasdaq under the symbol LI. Goldman Sachs, Morgan Stanley, UBS Investment Bank, and CICC are the joint bookrunners on the deal. It is expected to price during the week of July 27, 2020.
