In their Hong Kong debut on Wednesday, shares of Chinese electric vehicle producer Xpeng Inc. (NYSE: XPEV) started 1.8 percent higher than their initial public offering price.
What happened was this: As part of its dual primary offering in Hong Kong, Xpeng raised $1.8 billion by issuing 85 million ordinary shares at a price of HK$165 apiece ($21.24). Even though the benchmark Hang Seng Index is down 0.7 percent, the shares began at HK$168 ($21.62), up 1.8 percent.
One American Depositary Receipt (ADR) of Xpeng, which is traded on the New York Stock Exchange, is equal to two ordinary shares in Hong Kong.
Also see: XPeng Clock Record, Nio Which EV Manufacturer Outperformed in June Deliveries?
Why Does It Matter? Xpeng’s Hong Kong listing is dual main because the business lacks the minimum two-year listing track record to pursue a secondary listing in the Asian financial center. 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 the first of the three electric vehicle manufacturers to complete a dual-listing in Hong Kong.
Price Changes: In Tuesday’s regular trading session on the New York Stock Exchange, Xpeng shares closed 0.7 percent higher at $44.05, but fell less than 0.1 percent in the after-hours session to $44.03.
Continue reading: BofA Increases XPeng Targets for P7, G3i, and P5 Prospects
For the most up-to-date information on electric vehicles, go to Benzinga’s EV Hub.
(C) 2021 Benzinga.com, courtesy of Xpeng. Benzinga does not offer financial advice. All intellectual property rights are reserved./n
