- The company sold 85 million shares in the deal which equates to 5 per cent of its shares, according to its prospectus
- There is an over-allotment option to sell a further 12.75 million shares that would raise an extra $270 million
As per a report by Reuters, Chinese electric vehicle maker Xpeng Inc will raise $1.8 billion by pricing its shares at HK$165 each as part of its Hong Kong dual primary listing, two people with direct knowledge of the matter said. The report added that the people declined to be identified as the information was not yet public. Xpeng declined to comment on pricing guidance given to investors.
Xpeng chose a dual primary listing
The company sold 85 million shares in the deal which equates to five per cent of its shares, according to its prospectus. There is an over-allotment option to sell a further 12.75 million shares that would raise an extra $270 million, added the report.
The report added that Xpeng chose a dual primary listing rather than a secondary listing as it has been listed in New York for less than two years. Under Hong Kong rules, a secondary listing requires at least two financial years of good regulatory compliance on another qualifying exchange. It added that the dual primary listing allows qualified Chinese investors to invest in the company through the Stock Connect regime linking mainland Chinese and Hong Kong markets, as per exchange rules. A cap of HK$180 per share was put on the deal for retail shareholders as part of the listing.
