Xpeng Inc. (NYSE: XPEV), a Chinese electric car manufacturer, is expected to raise $1.8 billion in its Hong Kong IPO, according to Reuters, citing two people with direct knowledge of the situation.
What Happened: As part of its Hong Kong dual main offering, Xpeng is pricing its shares at HK$165 ($21.25) per, according to the report. Last week, it was rumored that Xpeng might raise up to $2 billion from its Hong Kong IPO.
According to the newspaper, the company sold 85 million shares in the offering and established a maximum price of HK$180 ($23.19) per share for retail buyers.
One American Depositary Receipt (ADR) equals two ordinary shares in Xpeng.
See also: Nio Stock’s Rally Continues: So, what’s going on here?
Why Does It Matter? Because the firm lacks the two-year listing track record required for a secondary listing in the Asian financial hub, Xpeng’s listing in Hong Kong is dual primary rather than secondary. Last year, the company went public in New York.
The Chinese EV trio of Xpeng, Nio Inc. (NYSE: NIO), and Li Auto Inc. (NASDAQ: LI) engaged investment advisors for their Hong Kong IPOs in March, according to reports. Xpeng is on track to become the first of the three EV makers in Hong Kong to accomplish a dual-listing.
Chinese companies that are listed in the United States are looking to increase their investor base closer to home by listing in Hong Kong. It will also assist to alleviate the lingering effects of a US regulatory crackdown on Chinese companies listed on US exchanges.
Price Action: Xpeng shares fell about 2.2 percent to $44.32 in Tuesday’s trading session.
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