Xpeng poised to raise HK$14 bil in Hong Kong listing

Electric-vehicle maker Xpeng has raised about HK$14 billion ($2.43 billion) in its Hong Kong listing, becoming the first Chinese EV producer to finish a so-called homecoming share sale.

The US-listed firm sold 85 million shares at HK$165 each, according to an exchange filing on June 30, confirming an earlier Bloomberg News report. The offer price represents a discount of about 4.1% to its closing price of US$44.32 on June 29 on the New York Stock Exchange.

Xpeng had set a maximum price of HK$180 for the portion reserved for retail investors. One of Xpeng’s American depositary shares is equivalent to two ordinary shares. Trading in Hong Kong is slated to start on July 7.

Xpeng is the latest to join a slew of UStraded Chinese firms selling shares in Hong Kong, giving them a hedge against the risk of being kicked off American exchanges while broadening their investor base closer to home. About US$37 billion has been raised through such homecoming-listings since Alibaba Group Holding started the trend in late 2019. Prior to Xpeng, online travel platform Trip.com Group raised US$1.2 billion in a second listing in the city in April.

The Guangzhou-based firm will be the first among three US-listed Chinese EV makers to complete a dual listing. Nio and Li Auto are also planning share sales in the Asian financial hub, Bloomberg News reported in March.

Xpeng went public in New York in August last year through an initial public offering that raised $1.72 billion. The timespan makes the Hong Kong listing dual primary instead of secondary, unlike the other homecoming listings, which require at least two years of trading on another exchange. —