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April 8, 2021, 6:41 a.m. EDT

Li Auto's stock bounces after $750 million in convertible notes prices

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By Tomi Kilgore

Shares of Li Auto Inc. /zigman2/quotes/219811686/composite LI +1.50% bounced 2.3% in premarket trading Thursday, after the China-based elective vehicle maker said the $750 million in convertible note offering has priced, with an initial conversion rate that implies a 27.5% premium. The company said the notes, which will mature on May 1, 2028, will bear interest at a rate of 0.25%, payable semiannually, starting Nov. 1, 2020. The note holders may convert their notes at any time after Nov. 1, 2027 to cash, American depositary shares (ADS) or a combination of both. The initial conversion rate of the notes is 35.2818 ADS per $1,000 principal amount of the notes, which implies a stock price of $28.34, or 27.5% above Wednesday's closing price of $22.23. The stock had tumbled 12.9% on Wednesday after the company announced plans to offer the convertible notes. The stock has tumbled 35.2% over the past three months. In comparison, shares of rival China-based EV maker Nio Inc. /zigman2/quotes/204905836/composite NIO +0.71% had slumped 36.7% over the past three months, while the iShares MSCI China ETF /zigman2/quotes/206267952/composite MCHI -0.10% has lost 4.6% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.74% has gained 6.7%.

/zigman2/quotes/219811686/composite
US : U.S.: Nasdaq
$ 18.26
+0.27 +1.50%
Volume: 7.01M
May 7, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$16.52 billion
Rev. per Employee
$327,692
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/zigman2/quotes/204905836/composite
US : U.S.: NYSE
$ 36.94
+0.26 +0.71%
Volume: 55.55M
May 7, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$57.96 billion
Rev. per Employee
N/A
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/zigman2/quotes/206267952/composite
US : U.S.: Nasdaq
$ 80.77
-0.08 -0.10%
Volume: 2.82M
May 7, 2021 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,232.60
+30.98 +0.74%
Volume: 2.05B
May 7, 2021 5:15p
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