Li Auto, one of the major Chinese electric car manufacturers has made an announcement in regards to its future plans. The EV maker has announced that it plans on raising a total of $2 billion and it aims to do it through investors from the United States.
Li Auto to Raise $2 Billion from Stock Offering
The Chinese electric vehicle manufacturer has announced that it will try to generate $2 billion through a stock offering. It will be doing it through the market and the investors from the US will be able to participate in the offering.
In the particular stock offering, the share prices for the automaker will be decided just when the offering is about to take place.
Goals to Achieve with the Raised Funds
According to the officials at Li Auto, once the funds are raised, they will be used in order to introduce new advancements into their technologies. Other sectors Li Auto wants to touch with the funds include future models’ developments and research on autonomous driving.
The information has been provided by Li Auto in the filing submitted with the SEC in the United States.
At-the-market offering to Raise Funds
Li Auto has confirmed that it will be offering stocks to US-based investors through the “at-the-market” process. Once the offering is over and the funds have been raised, they will be applied on a sequential basis.
Li Auto will be making these investments over the course of time in each sector in order to achieve its goal. As per the Li Auto officials, they are aiming to become the largest and most successful China-based automaker.
Over time, it is aiming to gain international recognition to compete with international electric vehicle makers such as Tesla and Volkswagen Group.
Major Firms to Participate in Li Auto’s “at-the-market”
Li Auto has confirmed that the companies that will act as agents for the new stock offering include Barclays Capital, UBS Securities, Goldman Sachs, and China International Capital Corporation’s Hong Kong unit.
Li Auto is among the companies based in China that are gradually gaining a strong reputation and demand in the US market. The US investors are interested to invest in Li Auto stocks as it is listed through one of the US stock exchanges.
It is also accompanied by other China-based electric vehicle companies such as XPeng and Nio. Despite making a promising announcement, Li Auto wasn’t able to perform well in the US stock market.
The share prices for Li Auto have plummeted by 3.3% in the early sessions of the stock trading market.