JCT 600
The Hong Kong Stock Exchange's listing committee has approved Chinese electric car maker Xpeng Motors' application for an initial public offering (IPO). The Tesla rival in China expects to raise between $1bn and $2bn, an interlocutor who was not authorised to speak publicly on the matter told CNBC.
Shares of Guangzhou-based Tesla rival Tesla are already trading in New York. An initial public offering in Hong Kong would be somewhat unusual. Unlike China's Alibaba and JD.com, which were listed on US exchanges and had a so-called secondary listing in Hong Kong, Xpeng will have a dual primary listing. This means it will be subject to the rules and supervision of both US and Hong Kong regulators. However, such a scheme would allow Chinese investors to buy the company's shares. This could potentially boost investors.
Xpeng competes in China not only with traditional carmakers looking to increase their share of the electric car market, but also with US market leader Tesla and Chinese start-ups Nio and Li Auto. The latter two are also planning to go public. According to Xpeng, it delivered 5,686 vehicles to the market in May - up 483% year-on-year and 10% from April. The company plans to deliver between 15,500 and 16,000 cars in the second quarter. In April, Xpeng launched sales of the P5 electric car, its third production model and second sedan after the P7.
source: cnbc.com
Shares of Guangzhou-based Tesla rival Tesla are already trading in New York. An initial public offering in Hong Kong would be somewhat unusual. Unlike China's Alibaba and JD.com, which were listed on US exchanges and had a so-called secondary listing in Hong Kong, Xpeng will have a dual primary listing. This means it will be subject to the rules and supervision of both US and Hong Kong regulators. However, such a scheme would allow Chinese investors to buy the company's shares. This could potentially boost investors.
Xpeng competes in China not only with traditional carmakers looking to increase their share of the electric car market, but also with US market leader Tesla and Chinese start-ups Nio and Li Auto. The latter two are also planning to go public. According to Xpeng, it delivered 5,686 vehicles to the market in May - up 483% year-on-year and 10% from April. The company plans to deliver between 15,500 and 16,000 cars in the second quarter. In April, Xpeng launched sales of the P5 electric car, its third production model and second sedan after the P7.
source: cnbc.com
