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Ideal car officially landed on NASDAQ with an issue price of $11.50 per share.

iconJul 31, 2020 08:27

On July 30th, ideal Automobile was officially listed on the NASDAQ stock market under the symbol "LI" at an issue price of $11.50 per share.

According to previous information, ideal Automobile will issue 95 million shares at $11.50 a share, while the company's initial goal is to issue shares at a price of $8 to $10 a share. The IPO values the ideal car at about $10 billion. Hillhouse Capital (Hillhouse Capital), a private equity firm, agreed to invest $300m in it as part of IPO, the company said in a regulatory filing.

The underwriters of the ideal IPO include UBS (UBS) and China International Capital Corporation (CICC). In its prospectus, the company said it would spend most of the money it raised on capital expenditure and research and development of new products.

In its latest prospectus, ideal Motors revealed that in the second quarter of this year, it delivered a total of 6604 new cars, an increase of 128% over the first quarter; revenue was 1.9 billion yuan ($275 million), an increase of 128.6% month-on-month; gross profit margin rose from 8.0% in the first quarter to 13.3%, mainly due to economies of scale brought about by increased production. The net loss was 75.2 million yuan ($10.6 million); total operating expenses increased by 44.1% compared with the first quarter, mainly due to the expansion of the network of retail, distribution and service centers, as well as increased marketing and promotional activities; at the end of the second quarter, it has 3.7 billion yuan ($521.2 million) in cash and cash equivalents, restricted cash, term deposits and short-term investments.

For the listing, ideal Motor said in its prospectus that the company would spend most of the money raised on capital expenditure and research and development of new products. This includes the launch of a full-size advanced electric SUV model with a next-generation incremental powertrain in 2022, when ideal will increase the annual production capacity of its Changzhou manufacturing plant from 100000 to 200000. In addition, ideal cars will include medium-sized and compact SUV models.

In the future, ideal will focus on the SUV market segment; continue to innovate in areas such as electrification, automotive intelligence and self-driving; and further expand the sales network, optimize efficiency, and improve operations and costs.

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