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This comes as the Chinese electric vehicle market becomes increasingly competitive.
Hong Kong Exchanges and Clearing’s rating committee gave Xpeng the green light, added the source, who was not authorized to speak publicly on the case.
Xpeng is already listed in New York. The initial Hong Kong public offering will be slightly unusual.
While Chinese companies already listed in the United States, such as Alibaba and JD.com, have come to Hong Kong to perform so-called secondary listings, Xpeng will conduct a dual primary listing.
This means that it will be subject to the rules and oversight of US and Hong Kong regulators, which is not the case with a secondary listing.
JPMorgan Chase and BOFA will be the main banks facilitating the listing, the source said.
Xpeng Motors declined to comment when contacted by CNBC.
But Xpeng is also raising money as it seeks to compete in an increasingly crowded electric car market in China. Not only is it up against mainstream automakers looking to increase their electric car market share, but it is also up against market leader Tesla and local start-ups like Nio and Li Auto. The latter two are also listed in the United States
Xpeng said it delivered 5,686 cars in May, an increase of 483% year-on-year and a 10% increase from the previous month, at a faster pace than in April. The company aims to deliver between 15,500 and 16,000 units in the second quarter.
In April, Xpeng launched the P5, its third production model and its second sedan after the P7. The company is focused on strengthening its technology, including certain autonomous driving features, to differentiate itself from its competitors.