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China’s Xpeng Motors raises up to $ 2 billion in Hong Kong IPO

The XPeng Motor P7 electric vehicle is on sale at Wanda Plaza on May 9, 2021 in Beijing, China.

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Guangzhou, China — US-listed Chinese electric vehicle manufacturer Xpeng Motors There is a green light to conduct an IPO in Hong Kong, which could raise $ 1 to $ 2 billion, a source close to the issue told CNBC.

This happens as competition in the Chinese electric vehicle market intensifies.

The Hong Kong Stock Exchange Listing Commission has given Xpeng a green light, adding sources who are not allowed to speak publicly on the issue.

Xpeng is already listed on New York. Initial public offerings in Hong Kong will be a bit unusual.

Meanwhile, Chinese companies are already listed in the United States. Alibaba And Since we came to Hong Kong for the so-called secondary listing, Xpeng will carry out a double primary listing.

This means that it is subject to the rules and oversight of both US and Hong Kong regulators, but not for dual-listed companies.

But that also means that Guangzhou-based electric car makers will be part of a “stock connect” scheme that will allow investors in mainland China to buy shares in the company. This could increase the pool of investors.

According to sources, JPMorgan Chase and BOFA will be the major banks to promote listing.

Xpeng Motors declined to comment when contacted by CNBC.

Read more about CNBC Pro electric cars

Plans to raise money in Hong Kong are coming as tensions between the United States and China continue to threaten Wall Street-listed companies.The· U.S. Securities and Exchange Commission adopted rules Earlier this year, we imposed stricter audit requirements on US-listed foreign companies. This poses a delisting threat to non-compliant companies.

But Xpeng is also raising money as it appears to compete in the increasingly crowded Chinese electric vehicle market. Not only are they faced by traditional automakers trying to increase their market share in electric vehicles, but they are also competing with market leaders. Tesla Homemade start-ups like Nio And Reauto..The latter two are also listed in the United States

Xpeng said it delivered 5,686 cars in May — At a faster pace than April, it increased by 483% year-on-year and 10% month-on-month. The company aims to deliver 15,500 to 16,000 units in the second quarter.

In April, Xpeng launched P5, The third production model and the second sedan following the P7.The company Focus on boosting that technology It has several autonomous driving features to differentiate you from your competitors. China’s Xpeng Motors raises up to $ 2 billion in Hong Kong IPO

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