Chinese electric vehicle maker Xpeng to raise up to $ 2 billion in Hong Kong – .

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Chinese electric vehicle maker Xpeng to raise up to $ 2 billion in Hong Kong – .


An Xpeng P7 electric car is on display at the 18th Guangzhou International Automobile Exhibition at the China Import and Export Fair Complex on November 20, 2020 in Guangzhou, China’s Guangdong Province.
VCG | China Visual Group | Getty Images
GUANGZHOU, China – Chinese electric car maker Xpeng will raise nearly $ 2 billion in a Hong Kong listing.
The Guangzhou-based company said Thursday that it will issue 85 million Class A common stock at a price of no more than HK $ 180 ($ 23.19) each. A final offer price will be set on or about June 30.

At the maximum offer price, Xpeng would raise HK $ 15.3 billion ($ 1.97 billion) before related costs such as subscription fees.

CNBC reported earlier this week that Xpeng was looking to raise between $ 1 billion and $ 2 billion.

Xpeng is already listed in New York. Its stock offering in Hong Kong is unusual because it is not a secondary listing, as companies like Alibaba and JD.com have done. A secondary listing occurs when a company already has a primary listing location such as the United States, and then sells shares on another exchange.

Instead, Xpeng does what’s called a dual primary list. 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.
Depending on demand, Xpeng and its underwriting investment banks could issue more shares, which would likely increase the amount of money the company makes from listing.

Xpeng said it will use the Hong Kong listing product to expand its products and develop more advanced technologies, as well as for marketing and manufacturing expansion.

Chinese companies listed in the United States have sought to list in Hong Kong as a way to guard against tensions between China and the United States.

Earlier this year, the U.S. Securities and Exchange Commission passed rules that place stricter audit requirements on foreign companies listed in America. These requirements carry the threat of delisting for companies that break the rules.

Xpeng faces growing competition in China from other start-ups like Nio and Li Auto, as well as Tesla and traditional car makers entering the electric vehicle market.

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