China based electric vehicle manufacturer Li Auto Inc. (LI) is looking forward to raise $1.1 billion in its upcoming Nasdaq initial public offering in slated for July 30. The company said it sold more shares than it anticipated to investors.
According to internal sources, the company sold 95 million shares to investors at $11.5 per share. This price was however slightly higher than the $8 to $10 per share range the company had earlier announced.
The company says it will direct proceeds from the IPO into capital expenditures, research and introduction of new products in the market.
Li Auto’s IPO in the United States comes at a time when economic tensions between China and the U.S are heated. Several weeks ago U.S regulators threatened to introduce tougher measures meant to make it hard for Chinese companies to get listed on U.S markets.
Li Auto was established five years ago, it was earlier known as CHJ Automotive before re-branding. Its China based competitor NIO Inc. (NIO) also went public in the U.S markets two years ago and since then the market value of the company has tripled.