Shares of Li Auto Inc. sank Friday, placing them on monitor for a seventh-straight decline, after the China-based electrical car maker’s public share offering priced at a discount of greater than 10%.
The firm mentioned the 47 million share secondary offering of its U.S.-listed stock, which it disclosed earlier than Wednesday’s open, had priced at $29.00 per American depositary share (ADS). That was 10.3% beneath Thursday’s stock closing worth of $32.31.
slid 5.2% in afternoon buying and selling. It has now plunged 30.3% amid a seven-day shedding streak, which began after the stock closed at a document $43.96 on Nov. 24. That could be the longest shedding streak because the stock went public on July 30.
Li Auto raised $1.36 billion from the share offering, and will elevate about one other $204.5 million if the underwriters train all the choices to purchase further shares, granted to cowl overallotments.
The firm plans to make use of the proceeds for analysis and improvement of next-generation electrical car applied sciences, together with ultrafast charging, future automobile fashions, autonomous driving applied sciences and common company functions.
In the 2 days because the offering was introduced, the stock fell 7.3%. If the offering had priced at a ten.3% discount to the Dec. 1 closing worth of $34.86, the 47 million ADS offering might have raised $1.47 billion.
Among different China-based EV makers, shares of Nio Inc.
dropped 5.0% in afternoon buying and selling Friday, and has shed 20.2% to date this week. XPeng Inc.’s stock
declined 5.0% Friday and has tumbled 23.4% week so far.
Also learn: XPeng downgraded at UBS, as stock has run up an excessive amount of to maintain shopping for.
The pullback within the shares Friday comes because the iShares MSCI China exchange-traded fund
has slipped 2.2% this week and the S&P 500 index
Elsewhere, shares of Kandi Technologies Group Inc.
eased 0.4% in afternoon buying and selling, and has plummeted 41.0% this week; Geely Automobile Holdings Ltd.
gained 3.4% Friday and BYD Co.
tacked on 2.5%.