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

Chinese electric car maker Li Auto reported Tuesday that it programs to increase $2 billion from U.S. buyers as a result of an “at-the-current market” stock giving, in which share price ranges are determined at the time they’re marketed.

The funds will be used to create new technologies, together with for autonomous driving, and for the development of potential versions, the Beijing-primarily based business reported in a submitting with the Securities and Exchange Fee.

A organization boosting cash by means of an at-the-marketplace giving will generally market a designated amount of stock around time by expenditure banking companies at prevailing marketplace charges. Li Automobile said that Goldman Sachs, UBS Securities, Barclays Cash, and the Hong Kong unit of China Global Cash Corporation will be its brokers for the new inventory featuring.

Li Vehicle is one particular of a number of Chinese electric auto firms to have drawn notice from U.S. traders in the final numerous years, alongside with rivals including Nio and XPeng. Founded in 2015, the business specializes in upscale electric SUVs with so-called “assortment extenders”, which are inner-combustion engines that act as turbines to recharge vehicles’ batteries when driving.

While more electric cars are sold in China than in any other region, there are however elements of China exactly where EV chargers are reasonably scarce. A assortment extender can provide reassurance for customers in individuals areas and for drivers somewhere else who are not really ready to go 100% electric powered.

Li’s two SUV designs, the midsize A person and flagship L9, offer you 188 km (about 117 miles) and 180 km (about 112 miles) of electrical-only assortment, respectively.

Li’s U.S.-listed shares were down about 3.3% in early buying and selling adhering to the announcement.