Chinese Electric Vehicle Maker Li Auto to Sell $2 Billion of New Shares

What’s new: Chinese electric-car maker Li Auto plans to sell $2 billion of American Depositary Shares (ADSs) through an “at-the-market” stock offering, the company said Tuesday.

An at-the-market offering is a flexible stock sale in which a company offers a designated number of new shares over time at prevailing market prices.

Each ADS represents two shares of Li Auto’s Class A common stock. Based on the average closing price of the five trading days before June 24, Li Auto will sell 53.84 million ADSs, equivalent to 5.2% of the company’s outstanding common shares.