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On the evening of July 30th, ideal Automobile was officially listed on NASDAQ under the stock symbol "LI", becoming the second new Chinese car-making force to appear on the market after Ulai. However, due to the epidemic, the ideal listing ceremony is not like Lulai, but a live listing in the ideal Beijing delivery center.

According to ideal, a total of 95 million American depositary shares ("ADS") were issued to the public, while IPO underwriters had oversubscribed rights to 14.25 million American depositary shares priced at $11.50 per share, which was higher than the pricing guidance range of $8 to $10 per share and higher than the initial price of $6.26 per share at the beginning of the listing of Xilai Motor.

As the ideal as the second listed car company in China, it is naturally compared with Wei in more and more industries. Ideal Motor shares rose to $16.46 on the first day of trading, up 43.13%. The intraday share price rose as high as $17.50 per share, with a market capitalization of more than $14.8 billion at one point, but with the after-market adjustment, the US stock closed on July 30. the total market capitalization is 13.917 billion US dollars, still not exceeding the total market capitalization of 14.304 billion US dollars of Xilai Motor.

Ideal Automobile, along with Lulai, Xiaopeng and Weimar, is the leading enterprise of the new power of car-making in China, and it is also the latest of these companies to achieve the delivery of new cars. However, it is also due to the financing of a number of investors that it can take the lead in becoming a listed car company after Ulai. According to incomplete statistics of the investment community, ideal has obtained at least eight rounds of financing before listing, with a cumulative financing amount of more than 2 billion US dollars (about 13.9 billion yuan).

Li Xiang also mentioned at the event that he met more than 600 investors in half a year this year, equivalent to seeing at least 3 investors every day. Perhaps this is why the ideal subscription is so popular that it is nearly 40 times oversubscribed and finally makes the ideal bell ring one day earlier than before.

According to the prospectus, the founder, chairman and CEO of ideal is the largest natural person shareholder of ideal before going public, holding about 356 million shares, accounting for about 25.1 per cent of the total share capital and having 70.3 per cent of the voting rights. Wang Xing and his related party, Meituan, are the second-largest shareholder of ideal Motor, holding 332 million shares, accounting for about 23.5% of the total share capital, while Li Xiang has only 9.3% of the voting rights.

Ideal Automobile is also its third startup for founder Li Xiang, who previously founded Bubble net and Automobile Home, which was established in April 2015 with a registered capital of 915 million yuan. It is a start-up company focusing on the development and manufacture of electric vehicles. Its first add-on, SUV "ideal ONE", was released in October 2018.

Although with Xiaopeng, Weimar and other new power car companies founded, but ideal to become the latest delivery of new cars, until December last year to achieve new car delivery. However, ideal has set a record for the fastest delivery of 10,000 cars by new car-building forces in a short period of seven months.

Public data show that ideal ONE sold 9492 vehicles in the first half of this year, with an average monthly sales of about 1500. Among them, the ideal car delivery volume in the second quarter of this year is 6604, an increase of 128 per cent over the previous quarter. The increase in delivery also raised the gross margin of the ideal car from 8% in the first quarter to 13.3% in the second quarter.

Let ideal Motors achieve a net income of 1.9 billion yuan in the second quarter of this year, an increase of 128.6% over the first quarter, and a net loss of 75.1 million yuan from 77.1 million yuan in the first quarter, which also makes it better than IPO when it was in a state of heavy loss.

In the current market under the impact of the declining automobile industry and the epidemic, it is not easy to obtain the choice of investors, but the ideal car can be highly sought after, and it may be the ideal to have a good value investment.

According to Cao Yi, founding partner of the source code, the new energy automobile industry is very large and is still in the early stages of change, but Li Xiang's grasp of the core characteristics of the Chinese market is still very accurate. In the current charging environment, the more cost-effective extended range route will also have an advantage for quite a long time, so I believe that as time goes by, people will more and more understand and agree with this. And the ideal is more about the user experience, which is also a big advantage of the ideal.

Of course, with the ideal listing will also help its financing, while helping the ideal to enhance a certain degree of influence. However, some of the frequent problems with the ideal ONE may have an impact on the ideal stock price.

At the same time, there are media reports that Xiaopeng Motor, another new car maker, is also planning to launch in the United States as early as mid-August, with an IPO size of at least $700 million. Bank of America, Credit Suisse and JPMorgan Chase are preparing for Xiao Peng's listing. In November, the company raised $400m in private equity, which is said to value Xiaopeng at close to $4 billion. In response, Xiaopeng Automobile responded: do not comment on market rumors.

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