Chinese electric vehicle maker Xpeng Inc. (NYSE: XPEV) has received approval from the Hong Kong stock exchange for a dual primary listing in the city, Bloomberg reported — citing people with knowledge of the matter.
What Happened: Xpeng could raise as much as $2 billion from the listing in Hong Kong as soon as this year, as per the report.
Xpeng’s listing in the Asian financial hub is a dual primary one and not a secondary listing as the company does not satisfy the two-year listing track record required for it to pursue a secondary listing in Hong Kong. The company went public in New York only last year.
See Also: Analyzing XPeng’s Unusual Options Activity
Why It Matters: Companies such as Xpeng, which operate in a cash-intensive industry, are seeking to raise further money without the accompanying financial burden. Xpeng, which has an SUV named G3 and a sedan named P7, unveiled its third mass-produced electric sedan model called the P5 in April.
It was reported in March that the Chinese EV trio of Xpeng, Nio Inc. (NYSE: NIO) and Li Auto Inc. (NASDAQ: LI) has hired investment advisors for their Hong Kong IPOs.
Chinese companies that are listed in the U.S. are also pursuing a listing in Hong Kong in order to expand their investor base closer to home. Additionally, it will serve to remove the overhang of a U.S. regulatory clampdown on U.S.-listed Chinese companies.
Price Action: Xpeng shares closed 8.3% lower in Tuesday’s trading session at $39.99.
Read Next: EXCLUSIVE: XPeng’s Brian Gu Talks EV Competition, Technology, P5 Sedan On ‘PreMarket Prep’
Photo: Courtesy of Xpeng Motors
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