Li Auto has submitted its listing application to the Hong Kong Stock Exchange at the end of May and will list in Hong Kong in a dual listing similar to that of XPeng Motors, Tencent News reported Friday.
Li Auto has been listed in the US for less than a year, and it is eager to raise capital in Hong Kong mainly because it considers the new energy sector is a hot trend at the moment, the report said, citing people familiar with the matter.
If it waits two years for a full listing in the US before returning to Hong Kong with a secondary listing, it is highly likely that the market will have changed by then and its fundraising will face more uncertainty, the report said.
According to the HKEx's process, a company can be listed in Hong Kong about three months after it submits an application for listing. XPeng passed its hearing at the end of June, about three months after submitting its application, and was listed on July 7.
Li Auto will probably start trading in Hong Kong around the end of August if all goes well with its Hong Kong listing application, the report said.
A dual listing means that in addition to listing in the US as its primary listing, Li Auto will also be listed in Hong Kong as its primary listing.
For Li Auto, which is already listed in the US, it will need to follow the listing rules of the Hong Kong market when applying for a listing in Hong Kong.
This is similar to the situation of XPeng, which was listed in Hong Kong on July 7. Like XPeng, Ideal, which listed in the US in July 2020, has been listed for less than two years.
According to the HKEs listing requirements, Li Auto does not meet the requirement of two consecutive fiscal years of listing in the US and therefore cannot be listed in Hong Kong by way of a secondary listing.
For Li Auto, returning to Hong Kong with a dual listing will face a more stringent review by the HKEs compared to a secondary listing.