Xpeng Shares Open 1.8% Higher In Hong Kong On Debut

Shares of Chinese electric vehicle maker Xpeng Inc. XPEV opened 1.8% higher from the initial public offering price in their Hong Kong debut on Wednesday.

What Happened: Xpeng raised $1.8 billion after it issued 85 million ordinary shares at a price of HK$165 each ($21.24) as part of its dual primary listing in Hong Kong. The shares opened at HK$168 ($21.62), representing a 1.8% increase, even as the benchmark Hang Seng Index is down 0.7%.

Xpeng’s one New York-listed American Depositary Receipt (ADR) is equivalent to two ordinary shares in Hong Kong.

See Also: Nio, XPeng Clock Record June Deliveries: Which EV Maker Outperformed?

Why It Matters: Xpeng’s listing in Hong Kong is a dual primary one 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 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 the first among the three EV producers to complete a dual-listing in Hong Kong.

Price Action: Xpeng shares closed 0.7% higher in Tuesday’s regular trading session on the New York Stock Exchange at $44.05, but edged down less than 0.1% in the after-hours session to $44.03.

Read Next: BofA Raises XPeng Target On P7, G3i, P5 Prospects

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Photo: Courtesy of Xpeng