Li Xiang, founder of Chinese electric vehicle maker Li Auto (NASDAQ: LI) , said on October 26 that his company will not make any financial or outbound investments for 12 months after the IPO and all funds will be used for research and development and talent acquisition priorities.
Li Xiang said in a WeChat friend circle status that he would not attend any LP (Limited Partners) meetings or annual meetings with investors, nor would he allow any colleagues to attend.
He said that Li Auto is fighting an uphill battle, one that is more brutal than most people can imagine, and that everyone on the team has to do their best.
Li Xiang said Li Auto's obligation to its shareholders is to make a lot of money over the long term. "We're confident in that and the other needs of our shareholders have to give way to that core need."
Li Xiang also said Li Auto refrains from making any financial or foreign investments for the 12 months following its IPO to avoid greed and temptation. All of its capital is spent on technology research and development, customer service, quality improvement, talent acquisition, and doubling its investment.
Li Xiang, born in 1981, is the representative of young serial entrepreneurs in China, he has founded pcpop.com and Auto Home.
On July 30, 2020, Li Auto went public on NASDAQ with an offering price of $11.50, above the $8-$10 pricing guidance range, for a total fundraising of nearly $1.1 billion and a total offering market capitalization of $9.7 billion.
This is the largest IPO by a Chinese company on the Nasdaq since iQiyi's $2.4 billion IPO in March 2018.
Li Auto also became the second Chinese new carmaker to successfully list in the US after NIO.