Will the second Hong Kong-listed new car company be born? Ideal Auto passed the Hong Kong Stock Exchange listing hearing, “Wei Xiaoli” opened a new round of card slot competition

After Xiaopeng Motors, Hong Kong stocks will usher in a new power car manufacturer.

After Xiaopeng Motors, Hong Kong stocks will usher in a new power car manufacturer.

On July 26, the ” Daily Business News ” reporter learned that Ideal Auto passed the Hong Kong Stock Exchange listing hearing, and Goldman Sachs and CICC were joint sponsors. Earlier, it was reported that Ideal Motors had submitted a listing application to the Hong Kong Stock Exchange at the end of May and will return to Hong Kong stocks in a dual-listing manner. In this regard, the relevant person in charge of Ideal Auto told reporters: “We do not comment on market rumors.”

Will the second Hong Kong-listed new car company be born? Ideal Auto passed the Hong Kong Stock Exchange listing hearing, "Wei Xiaoli" opened a new round of card slot competition

Image source: Daily economic news data map

It is worth noting that Ideal Auto did not deny the rumors of returning to the Hong Kong stock market for many times. Li Xiang, founder, chairman and CEO of Ideal Auto, previously said in an interview with reporters: “We don’t mind obtaining more capital reserves in any way, including capital market, secondary market, bank loans and bond issuance, etc.”

Lee would like to view, Wei to car , ideal car, Xiaopeng car rivals include Tesla , millet , Baidu and other new players and the traditional car companies, they are very abundant in the reserve fund, as the “war” when logistical stocks For the importance of car manufacturing, the more abundant the funds, the more calm.

1  Hong Kong stocks will welcome the second new car company?

If progress goes smoothly thereafter, Ideal Motors will become the second new car manufacturer to land in Hong Kong stocks after Xiaopeng Motors. As of the close on July 23, Eastern Time, Ideal Motors (LI) closed at 30.28 US dollars per share, with a market value of 27.393 billion US dollars.

Some analysts believe that countless cases have proved that if companies fail to solve problems such as sustainability, corporate operation standards, and financial authenticity, they will face a huge risk of losing capital trust after the initial public offering fails. The dual listing on the Hong Kong stock market not only shows that the ideal car company continues to develop well, but also reflects the Hong Kong capital market’s full enthusiasm for the Chinese concept stock smart electric vehicle company.

According to the data terminal retail sales of China Automobile released a few days ago, the insurance volume of Ideal ONE in June this year was 7,827. With this model, Ideal Auto also won the first place for the first time in the sales ranking of new power brands in China. Up to now, Ideal Car has delivered more than 63,000 new cars.

CITIC Securities believes that with the continuous improvement of domestic policies and systems and the gradual improvement of the market environment, the domestic market has become more attractive to some Chinese concept stocks in the United States . At the same time, the “Listing Rules” formulated by the Hong Kong Stock Exchange allows companies that focus on the Greater China region to retain the current VIE structure and weighted voting rights structure, which also removes many obstacles to the return of Chinese concept stocks.

Prior to this, Xiaopeng Motors had been listed on the Hong Kong stock market on July 7. Earlier, Reuters reported, citing people familiar with the matter, that NIO also plans to go public in Hong Kong this year to attract more investors and is discussing listing plans with several banks. As of now, NIO has not commented on the rumors.

Like Xiaopeng Motors, Ideal Motors does not meet the requirement of having a good regulatory compliance record of at least two years on another eligible exchange. Therefore, it will choose a “dual primary listing” to enter the Hong Kong stock market. According to the Hong Kong stock rules, this type of company must comply with all trading requirements on the Hong Kong Stock Exchange and the Second Exchange, but is not subject to the two-year rule.

According to the rules, “dual primary listing” companies can choose “Shanghai-Hong Kong Stock Connect” and “Shenzhen-Hong Kong Stock Connect”, and this advantage is not available to “secondary listing” companies. Ideal Auto can further narrow the market distance with A-share investors through Southbound Stock Connect, active stock transactions, and more potential for growth. This is also one of the biggest highlights of Ideal Auto’s IPO.

There is a view that whether it is Xiaopeng Motors or Ideal Motors, the efficiency of the two returning to Hong Kong stocks is extremely high, far exceeding the many Chinese concept stocks that have previously returned to Hong Kong, and both will fill the Hong Kong stock smart electric vehicle track at the same time. The smart electric vehicle concept stocks in the entire Hong Kong market are positive.

“Wei Xiaoli” starts a new round of card game

It is worth noting that after the baptism of the epidemic, new domestic car manufacturers have undergone a new round of reshuffle. Bojun Automobile , Sailin Automobile, etc. have fallen, while Weilai Automobile, Ideal Automobile, and Xiaopeng Automobile have successively The U.S. stock market is listed, forming the first echelon of new car-making forces.

There is a view that Weilai Automobile, Ideal Automobile, and Xiaopeng Automobile, which have overcome difficulties in the production and delivery of the first car, are accelerating the layout of the second stage of car manufacturing. It is understood that the three new automakers are increasing their investment in research and development in order to seize more market share.

Li Xiang told reporters that Ideal Auto will increase its investment in research and development in the future, and the research and development expenses will increase to 3 billion yuan in 2021. “In the next few years, R&D investment will continue to increase. Because the challenges (we) face in the next few years are completely different.” Li Xiang said.

Will the second Hong Kong-listed new car company be born? Ideal Auto passed the Hong Kong Stock Exchange listing hearing, "Wei Xiaoli" opened a new round of card slot competition

Picture source: every photo taken by reporter Sun Tongtong (data map)

It is understood that Ideal Auto will launch a full-size extended-range electric SUV next year, and it is also developing the next-generation BEV platform and future models. According to the plan, Ideal Auto intends to reach its sales target of 1.6 million vehicles in 2025, and seize more than 20% of the market share of China’s smart electric vehicles.

However, it should be noted that, as of now, the three companies, Weilai Automobile, Ideal Automobile, and Xiaopeng Automobile, have not yet achieved “self-bloodmaking” and are still in a state of loss. Financial report data shows that in the first quarter of 2021, Weilai Automobile, Ideal Automobile and Xiaopeng Automobile have net losses of 450 million yuan, 360 million yuan, and 790 million yuan respectively. In this context, a large amount of R&D investment still requires external “blood transfusion.”

Earlier, an investor who did not want to be named told reporters: “The new car-making forces are about to usher in a new wave of IPOs. Ideal and Xiaopeng’s first IPO will help to obtain more financing and increase the subsequent stock price. Who is the first? Whoever realizes this action will be able to get the head start.”

It is understood that Xiaopeng Motors, which has been listed on the Hong Kong stock market, has raised more than 13 billion Hong Kong dollars in this IPO, and the vast majority of this part of the funds will also be used for research and development. According to the prospectus, Xiaopeng Motors plans to use approximately 45% of the net proceeds from the Hong Kong stock listing to expand the company’s product portfolio and develop more advanced technologies.

According to previous news, Ideal Motors may be listed on the Hong Kong stock market before the end of August this year. How does its share price perform after its listing, and can it stand out in the new round of competition for new car-building forces after listing? The industry will continue to pay attention.

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