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Xpeng, a Chinese electric vehicle manufacturer, is expected to raise $1.8 billion in a Hong Kong IPO.
30 June 2021, by Scott Murdoch
According to two persons with firsthand knowledge of the situation, Chinese electric car maker Xpeng Inc would raise $1.8 billion by selling its shares at HK$165 ($21.25) each as part of its Hong Kong dual primary offering.
Because the information was not yet public, the people declined to be identified.
Investor pricing guidance was offered by Xpeng, but he declined to comment.
According to the company’s prospectus, the acquisition resulted in the sale of 85 million shares, or 5% of its total stock. There is an opportunity to sell an additional 12.75 million shares to raise an additional $270 million through over-allotment.
The New York American Depository Receipts (ADR) of Xpeng closed at $44.32 on Tuesday, down about 1%. According to a term sheet for the offer, one ADR is equal to two ordinary shares in Hong Kong.
The stock has more than doubled since its initial public offering in August 2020, although it is still considerably behind its November top of $64.28.
Because it has only been listed in New York for less than two years, Xpeng chose a dual primary listing over a secondary listing. A secondary listing in Hong Kong requires at least two financial years of satisfactory regulatory compliance on another qualifying market, according to Hong Kong regulations.
According to the exchange’s guidelines, the dual primary listing permits qualified Chinese investors to invest in the company through the Stock Connect system, which connects mainland Chinese and Hong Kong markets.
Xpeng, led by CEO He Xiaopeng, sells primarily in China, the world’s largest automobile market, where it competes with Tesla Inc. and Nio Inc.
As part of the offering, the deal was capped at HK$180 per share ($23.19) for individual investors.
Reuters
Xpeng Inc. is a company based in the United States.
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