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For listed companies, it is also a general operation to issue shares reasonably when more funds are needed. Ideal Auto (LI.US) announced plans to issue 47 million new ADS shares for a total issuance of approximately $1.6 billion.

According to Ideal's latest SEC filing, the company will apply to issue and sell a total of 47 million American Depositary Shares (ADS), each representing two Class A common shares of the company, for a cumulative amount of approximately $1.602 billion. Among them, Goldman Sachs, UBS and CICC are book managers.

Underwriters will have a 30-day option to purchase up to 7.05 million American depositary receipts from the company. It is reported that the holder of the so-called depositary certificate can substantially enjoy the basic rights such as dividends and voting of the basic stock, but because he is not a registered shareholder, he cannot directly exercise the rights of shareholders and must exercise them on behalf of the depositary.

The total rights issue size of this new share issue can reach 54.05 million ADS units, meaning that after deducting the corresponding issuance expenses, the company expects to receive a net income of approximately $1.6002 billion from this issue. Net proceeds are expected to be approximately $1,840.5 million if the underwriters exercise their options.

It is understood that the ideal car this time to increase the sale of shares is mainly used for the development of a new generation of electric vehicle technology. Ideal Auto said that about 30% of the funds will be used for research and development of new generation electric vehicle technologies, including high-voltage platforms, high-charge-discharge batteries and ultra-fast charging technologies; about 20% will be used for the development of next-generation BEV (Battery Electric Vehicle) platforms and future models; and about 20% will be used for the development of autonomous driving technologies and solutions; the rest will be used for general purposes.

According to the product planning of the ideal car exposed on the Internet, X series and S series new cars based on LRM2.0 platform will be launched. The current car code is M01, and the ideal ONE is based on the LRM1.0 platform. According to the plan, four models will be launched on the LRM2.0-based platform in the future. In addition to the model platform, vehicle code and price range level, the new model has also been shown to include the benchmark model.

Among them, X01 is positioned in a large 6-seat SUV with a price range of 350,000 - 500,000, against Mercedes-Benz GLS; X02 is positioned in a medium and large 6-seat SUV with a price range of 300,000 - 400,000, against Mercedes-Benz GLE; S01 is positioned in a medium and large 6-seat SUV with a price range of 250,000 - 350,000, against Tesla Model X; S02 is positioned in a medium 5-seat SUV with a price range of 200,000 - 300,000, against Tesla Model Y.

As one of the ideal cars of the head new force automobile enterprises, at present, only the ideal ONE of its first intelligent electric vehicle was officially launched on October 18,2018. However, only one model has achieved more than Xiaopeng automobile, followed by three models of NIO automobile.

However, in the face of the survival of the new forces of car building, the arms race seeking upward development has been the strategy of more head new forces automobile enterprises. Therefore, in order to expand larger market share, each automobile enterprise is gradually joining more new car research and development, and has realized the competition of product camp. At the same time, in the face of new car products and new technology research and development, capital is the most important "chip" in market competition.

According to the delivery data released by Ideal Auto a few days ago, Ideal ONE delivered 4646 vehicles in November, an increase of 25.8% month-on-month, setting a new monthly delivery record. From January to November 2020, the ideal ONE has delivered 26498 vehicles cumulatively.

In the third quarter, the ideal car realized revenue of 2.511 billion yuan, an increase of 28.9% month-on-month. As of the end of the third quarter of this year, the ideal cash reserve was 18.916 billion yuan.

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