Xpeng Set To Raise $1.8B In Hong Kong Listing: Report

Chinese electric vehicle maker Xpeng Inc. XPEV is set to raise $1.8 billion in its Hong Kong listing, Reuters reported Tuesday, citing two people with direct knowledge of the matter.

What Happened: Xpeng is pricing its shares at HK$165 ($21.25) each as part of its Hong Kong dual primary listing, the report noted. It was reported last week that Xpeng could raise as much as $2 billion from the Hong Kong listing.

The company sold 85 million shares in the offering and has set a maximum price of HK$180 ($23.19) per share for retail investors, as per the report.

Xpeng’s one American Depositary Receipt (ADR) is equivalent to two ordinary shares.

See Also: Nio Stock Extends Rally: What's Going On?

Why It Matters: Xpeng’s listing in Hong Kong 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 the Asian financial hub. The company went public in New York only last year.

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. Xpeng is now on track to be the first among the three EV producers to complete a dual-listing in Hong Kong.

Chinese companies that are listed in the U.S. are pursuing a listing in Hong Kong in order to expand their investor base closer to home. Additionally, it will help to remove the overhang of a U.S. regulatory clampdown on U.S.-listed Chinese companies.

Price Action: Xpeng shares closed almost 2.2% lower in Tuesday’s trading session at $44.32.

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