Chinese electric-car maker Xpeng has won approval for a Hong Kong initial public offering that could raise up to $2 billion, according to multiple reports.
rival, which is already listed on the New York Stock Exchange and has a market value of more than $30 billion, has been given the green light by Hong Kong regulators, The Wall Street Journal reported, citing a person familiar with the situation.
China is seen as a key market for electric vehicles, and new entrants such as Xpeng and NIO
have emerged in recent years as rivals to Elon Musk’s Tesla. Earlier this year, China raced past Europe to reclaim its spot as the world’s largest market for electric vehicles, according to analyst research.
American depositary receipts (ADRs) jumped more than 5% in U.S. premarket trading, following the reports on Wednesday.
The dual primary listing — both in the U.S. and Hong Kong — will enable the Chinese EV maker to be part of the “Stock Connect” program, which allows investors in mainland China to buy shares — a key aim of the move, the person said.
Xpeng surged on its U.S. trading debut in August 2020, after raising $1.7 billion from its IPO. It sold another $2.5 billion of U.S. stock in December. The stock has climbed 166% since the IPO.