Image source: XPeng
US-listed Chinese electric carmaker XPeng Inc (NYSE: XPEV) has received regulatory approval to move forward with a dual primary listing on the Hong Kong Stock Exchange.
Confidential sources familiar with the matter told The Wall Street Journal that XPeng aims to raise as much as $2 billion from a July offering.
Listing in Hong Kong will enable Chinese investors to invest in the company via the Stock Connect regime, linking the China and Hong Kong markets, a move that would greatly expand its pool of potential investors.
It also means XPeng will be subject to the rules and oversight of both US and Hong Kong regulators.
JP Morgan Chase & Co and Bank of American Corporation will be the main banks facilitating the listing.
XPeng, which develops smart car technologies for autonomous driving functions, mainly sells its three vehicle models in China, the world’s biggest car market.
The company, whose backers include Alibaba Group and Xiaomi Corp, has a market capitalization of $32 billion via American Depositary Shares that have been listed on the NYSE since last August.
XPeng’s China-based competitors, NIO and Li Auto, also have US listings.
Source: Equities News