Ideal car officially landed on the NASDAQ, listed!

Beijing time on the evening of July 30, ideal car officially “LI” as the securities code listed on the NASDAQ, becoming the second U.S.-listed domestic new power car companies. Ideal Auto’s listing price is $11.50/ADS, with a total of 95 million American Deposit stock (ADS) on the market value of $9.724 billion.
It is worth mentioning that the initial public offering, which ended early after the launch of the ideal car IPO, was completed on July 28th, raising more than $950m, and the offering price was higher than the original pricing guidance range. As a result, the IPO process for The Ideal Car was completed a day ahead of schedule.
Meanwhile, with a $550m D-wheeler capitalisation led by the US group on July 1st, Ideal Cars was valued at $4.05bn at the time, and now, in less than a month, the pre-market value of Ideal Cars has more than doubled.
After the IPO, Wang Xing and Mei group will have a longer stake than Li thought.
It is understood that the ideal car will issue Class A and Class B shares, Class A shares per share corresponding to 1 vote of voting rights, and B shares per share of 10 votes of voting rights. A total of 95m American deposit stock (ADS) will be issued in the IPO, equivalent to two Class A common shares per ADS, while B shares will be owned by Li Yi, founder, chairman and CEO of Ideal Automotive.
So, according to the July 11 prospecto, Mr Li’s stake is only 25.1 per cent, but his voting rights can be as high as 70.3 per cent. The second-largest shareholder, American Group, has a 23.5 per cent share ratio, with only 9.3 per cent of the voting rights.
However, after the IPO, GoGo Capital will participate in the IPO subscription offering to buy ads for up to $300m at the offering price. Existing shareholders in ideal cars such as Mei group, Byte Beat, Wang Xing and Wang Huiwen have agreed to buy $380m worth of Class A common stock at a private offering price that will be in the same way as the offering price.
Specifically, after the IPO, the group will buy $300 million, Byte Beat will buy $30 million, and the group’s two co-founders, Wang Xing and Wang Huiwen, will buy $30 million and $20 million, respectively, in their own names. That means Mr Li’s stake will be diluted to 21 per cent, while Mr Wang’s stake in the group will exceed Mr Li’s by 24 per cent.
But under AB-share rules, Mr Li’s voting rights are still the highest, at 72.7 per cent, compared with 8.3 per cent for Mr Wang and Mr Wang, who are also directors of Ideal Cars.
At the same time, according to the existing shareholder IPO purchase plan, the ideal car can implement the “green shoe mechanism”, that is, according to the CSRC issued in 2006 “securities issuance and underwriting management measures” Article 48 stipulates: “the number of initial public offering of shares of more than 400 million shares, the issuer and its main underwriters can use the over-allment option in the issuance plan.” This mechanism can stabilize the stock price movement after the listing of large-cap stocks, to prevent the stock price ups and downs.
Three years “hold two”, the U.S. capital market is optimistic about China’s new forces.
With Tesla’s popularity in China, U.S. capital markets are also more bullish on the outlook for China’s new energy vehicle companies. Industry insiders believe that the ideal car successfully launched in the United States, “thanks to Tesla’s driving effect.”
In the prospectos, China’s sales of new energy vehicles rose from 300,000 in 2016 to 1.1 million units in 2019, a compound annual growth rate of 54.6%, according to CIC. From 2020 to 2024, sales of new energy vehicles are expected to continue to grow at a compound annual rate of 34.5%.
Two years ago, as the first new U.S.-listed car company, Ully Automotive chose to list on the New York Stock Exchange. In August 2018, Ulysses, using the “NIO” stock code, officially landed on the NYSE at an issue price of $6, with a market capitalization of about $6.4 billion.
Although it has since experienced last October approaching the “dollar de-market”, financing difficulties and other difficulties, Wei li car this year finally reaped the endorsement of the Hefei government, while the introduction and delivery of models are also “getting better.” As of press time, Ulser’s shares were trading at $12.7, 043 million.
In fact, in terms of sales figures and gross margins, the ideal car fared better than the one that ullyn did before the IPO.
In the second quarter of 2020, Ideal Vehicle delivered 6,604 Ideal ONE vehicles, up 128% from 2,896 units in the first quarter. Ideal Motor’s net income at Q2 was $1.9 billion, up 128.6% from the first quarter, while gross margin increased further to 13.3% from 8.0% in the first quarter, and net loss decreased slightly to $75.2 million from $77.1 million in the first quarter.