Xilai Motors landed in Hong Kong in the form of "introduction", and Singapore did not raise funds only to "seize the runway"?

After "Wei Xiaoli" gathered in Xiangjiang, Li Bin also set his sights on the "Lion City" Singapore.

On February 28, the Lai Motor announcement was heard by the Hong Kong Stock Exchange and approved in principle for the secondary listing on the main board of the Hong Kong Stock Exchange. This listing adopts the way of introduction and listing, and does not involve the issuance of new shares and fund-raising. The company plans to start trading under the symbol "9866" on March 10, 2022.

In addition to listing in Hong Kong, Lai Motor mentioned in its prospectus submitted to the Hong Kong Stock Exchange that it had applied for a secondary listing by introduction to the main board of the Singapore Stock Exchange, and the specific listing date was under review.

"both the Stock Exchange and the Singapore Exchange have adopted the form of 'introduction' in the secondary listing of Weilai, which shows that there is something wrong with Weilai's user trust." Cao he, president of Quanlian Automobile Merchants Investment Management (Beijing) Co., Ltd., analyzed that, "first of all, in the form of 'introduction to listing', that is, the original part of the shares will be listed for the second time without financing, and the shares with problems will not be involved for the time being." and promised to solve it within a certain period of time. "

The "introduction listing" adopted by Xilai Motor this time can be understood as the listing behavior without financing. It is understood that "introduction to listing" is a way to apply for listing of issued securities, which does not issue new shares, but only shareholders of the company apply for listing and trading of their old shares and do not involve financing.

As a matter of fact, after Xiaopeng Motor and ideal Automobile were listed in Hong Kong, among the three leading enterprises of the new forces of car building, only Lulai Motor has been unable to land Hong Kong stocks for a long time. It was previously reported that Xilai had submitted an application for a secondary listing in Hong Kong as early as March 2021, but received inquiries from the Hong Kong Stock Exchange about its shareholding structure, including a user trust fund established in 2019. It is this user trust fund that hinders Lulai's planned listing of Hong Kong shares. "with regard to the establishment of user trusts, I think regulators should be worried about conflicts of interest." Bai Yiyang, an analyst at China Bank International, explained this.

"this hearing through the Hong Kong Stock Exchange shows that Ulai has solved the obstacle of user trust." You Weilai car insiders said, but it did not explain the specific plan.

At present, in addition to Lai Motor, many new car-building forces are also targeting the Hong Kong stock market, which is more flexible in mechanism, including Naxi Automobile, Zero Motor, Weimar Motor, and Chinese Express. Recently, it has been revealed that they will go to Hong Kong for IPO.

In Cao he's view, the rush to list shares in Hong Kong before a complete solution to the user trust problem is not all for financing, but for "occupying the runway". "whoever goes public first will stand on the runway and talk about refinancing later." Cao he said.

With regard to the listing in Hong Kong, the official of Ulai Automobile said, "the purpose of this listing is to provide alternative trading locations for the company's investors, slow down the geopolitical risks and expand the investor base. While the purpose of these listings can still be achieved, the interests of existing shareholders will not be diluted."

In addition, Xilai Motor especially emphasizes that the company is full of funds at present. Data show that as of Sept. 30, 2021, Lulai's cash reserves totaled about 47 billion yuan ($7.3 billion). In November of the same year, Weilai completed an ATM rights issue of about 12.7 billion yuan ($2 billion). (At-The-Market Offering), raised $2 billion by selling 53292401 ADS, in the market.

"the abundant cash flow of nearly 60 billion yuan provides a strong financial guarantee for the follow-up development of new models." Xilai Motor said to this.

In 2022, Ulai will deliver three new models based on the NT2.0 technology platform. It is reported that the delivery of ET7, the first medium-and large-scale intelligent electric flagship car, will begin on March 28th; the ET5, the medium-sized intelligent electric sedan, will be officially released on December 18, 2021 and is expected to start delivery in September 2022; and the large and medium-sized SUV ES7 has also been disclosed a few days ago, and is scheduled to be released in mid-April this year.