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Dandar Woo
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Transport
January 8 15:18

Chinese EV company Lixiang Automotive plans to file for US IPO

Chinese Lixiang Automotive has reportedly applied for an IPO in the US, following Tesla’s public market run and the terrific rise in NIO value
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Lixiang Automotive is an EV manufacturer that was established in 2015 in Beijing. It has raised US$1 billion while being private, and has estimated value at close to US$3 billion.
Another Chinese EV developer NIO got ahead previously and became public in the US two years ago. Its IPO turned out to be unfavorable: NIO went public at US$6.26 per share, then it fell to almost US$1, setting an annual low at an intimidating value of US$ 1.19 per share. Nevertheless, the stock price of NIO has got better, trading at US$3.84 per share to this date. It is still far from the starting IPO price, but it has climbed over 200% compared to its historical lows.
Tesla’s stock has also seen a considerable rise: it is currently valued at US$445.25 and has risen 150% from its annual lows of US$176.99. Investors seem to find encouraging its revenues.
These movements have shown Lixiang that US stock markets can be worth trying. The Chinese automaker is about to go public, although it has not really achieved a corporate maturity yet. Lixiang has unveiled that its Lixiang ONE 2020 electric car is officially mass-produced and will begin its deliveries in December.
If Lixiang really becomes public, it will demonstrate that corporate maturity is not crucially important for an initial public offering. When Lixiang gets to file F-1 application, we will see an extremely unprofitable company at the early stage of generating revenue.