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.
The Tesla TSLA,
China is seen as a key market for electric vehicles, and new entrants such as Xpeng and NIO NIO,
Xpeng XPEV,
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.
The structure differs from that of other Chinese companies listed in the U.S., including Alibaba BABA,
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.
