Xpeng Said To Get Nod For $2B Hong Kong Listing

Chinese electric vehicle maker Xpeng Inc. 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. NIO and Li Auto Inc. 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