The Guangzhou-based company, which holds its own against Tesla and Nio in its domestic market, offloaded 5% of its shares in the deal
Chinese EV maker Xpeng Inc will rake in $1.8 billion from its Hong Kong dual primary listing, sources have revealed.
The company sold 85 million shares in the deal – priced at HK$165 ($21.25) each – which equates to 5% of its shares, according to its prospectus. There is an over-allotment option to sell a further 12.75 million shares that would raise an extra $270 million.
Led by Chief Executive He Xiaopeng, Xpeng sells mainly in China, the world’s biggest car market, where it competes with Tesla Inc and Nio Inc.
Xpeng’s New York American Depository Receipts (ADR) closed on Tuesday at $44.32, down nearly 1%. One ADR is the equivalent of two ordinary shares in Hong Kong, a term sheet for the deal shows.
The stock has doubled since its August 2020 debut but is well down from its November peak of $64.28.
Xpeng chose a dual primary listing rather than a secondary listing as it has been listed in New York for less than two years. Under Hong Kong rules, a secondary listing requires at least two financial years of good regulatory compliance on another qualifying exchange.
The dual primary listing allows qualified Chinese investors to invest in the company through the Stock Connect regime linking mainland Chinese and Hong Kong markets, according to the exchange’s rules.
A cap of HK$180 per share ($23.19) was put on the deal for retail shareholders as part of the listing.
- Reporting by Reuters