Top 5 EV News CHJ Leading files IPO prospectus in the USA
By Wynand Goosen | Jul 13, 2020
CHJ Automotive's EV brand, Leading Ideal Motors, submitted a prospectus to the United States SEC for an IPO on the NASDAQ. The Chinese EV startup is targeting to raise $100 million and have the stock code “LI.” The funds raised will be mainly used for new product development, capital expenditure, including production equipment, and working capital.
The financial information in the prospectus shows that the startup showed a net loss of US$344 million in 2019 and US$10.89 million for Q1 2020. Leading Ideal holds cash and cash equivalents of US$149 million. The shareholding structure is divided into two classes of shareholding, Class A shares, and Class B shares. Class A shares correspond to 1 vote, and Class B shares correspond to 10 votes. Class A shares cannot be converted into Class B shares, and Class B shares can be converted into Class A shares. Currently, CEO and founder Li Xiang is the largest shareholder, holding 115,812,080 Class A shares, 240,000,000 Class B shares, 25.1% of the shares, and 70.3% of the voting rights. Wang Xing and Meituan hold 332,664,073 shares Class A shares hold 23.5% of the shares and have 9.3% of the voting rights.