Li Auto introduced final June 28 that it might promote as much as a complete of $2 billion in ADSs on Nasdaq in an ATM inventory providing program.
Li Auto (NASDAQ: LI) introduced the early termination of a $2 billion fundraising program introduced final yr, driving its shares larger in premarket buying and selling Wednesday.
Li Auto terminated its at-the-market (ATM) share providing plan introduced on June 28, 2022, efficient instantly after the shut of enterprise on September 27, US Jap Time, in response to its SEC submitting immediately.
The corporate is terminating the ATM providing as a result of it doesn’t intend to boost additional further funds or promote further securities below the ATM providing after the termination turns into efficient, it mentioned.
Li Auto introduced on June 28 final yr that it might promote as much as an combination of $2 billion in American Depositary Shares (ADSs), every representing two class A unusual shares of the corporate, below an ATM inventory providing program on Nasdaq.
Li Auto meant to make use of the web proceeds of the providing for analysis and growth of next-generation electrical car (EV) applied sciences, together with BEVs, sensible cockpits and autonomous driving applied sciences, it mentioned final yr.
It additionally deliberate to make use of the funds to develop and manufacture future platforms and car fashions, in addition to for working capital wants and basic company functions, in response to final yr’s announcement.
Up to now, Li Auto has offered 13,502,429 ADSs below the ATM providing, equal to 27,004,858 class A unusual shares of the corporate, it mentioned immediately.
Li Auto raised gross proceeds of $536.4 million by means of the providing, earlier than deducting as much as $7 million in charges and commissions payable to the promoting agent and sure different providing bills, it mentioned.
The corporate mentioned it has used, and can nonetheless intend to make use of, the web proceeds from the ATM providing for:
(i) analysis and growth of next-generation electrical car applied sciences together with applied sciences for BEVs, sensible cabin, and autonomous driving, (ii) growth and manufacture of future platforms and automobile fashions, and (iii) working capital wants and basic company functions.
Li Auto shares have been up in pre-market buying and selling on Wednesday, rising 2.84 p.c to $35.80 at press time.
The transfer comes after Li Auto fell 24 p.c within the US since August 7, doubtlessly eradicating a damaging issue weighing on its valuation.
Terminating the ATM providing early seems to be deal for Li Auto, as the corporate has seen sturdy deliveries this yr, leading to sturdy money movement.
Li Auto delivered a document 34,914 autos in August and has delivered greater than 30,000 autos in every of the previous three months.
Within the second quarter, Li Auto reported a document income of RMB 28.65 billion ($3.92 billion) and internet revenue of RMB 2.31 billion.
Li Auto’s gross revenue margin for the second quarter was 21.8 p.c, and car revenue margin was 21.0 p.c.
As of June 30, Li Auto’s money and money equivalents, restricted money, time deposits and short-term funding balances have been RMB 73.77 billion.
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