Chinese EV Maker XPeng Plans to List in Hong Kong

Electric-car maker

XPeng Inc.

XPEV 4.05%

has secured approval to sell shares in Hong Kong, making it the latest U.S.-listed Chinese company seeking to tap investors closer to home.

XPeng, which published a preliminary listing document Wednesday, aims to raise as much as $2 billion from the stock sale and begin trading on the city’s stock exchange in July, a person familiar with the situation said. The Chinese group is already traded on the New York Stock Exchange and has a market value of about $32 billion.

At that maximum size, such a share sale would mean the loss-making XPeng has been able to raise more than $6 billion from stock investors in less than a year. It raised $1.7 billion from an initial public offering on NYSE last August, and sold another $2.5 billion of U.S. stock in December.

Chinese automaker XPeng is betting that driving assistance features and other tech will be the key to winning new customers. WSJ travels to its research and development lab to see how its rivalry with Tesla could reshape how we drive. Photo: XPeng

Chinese electric-vehicle makers such as XPeng,

NIO Inc.


Li Auto Inc.

have joined American EV companies in tapping U.S. markets for funds, capitalizing on investors’ bullishness about the industry’s prospects. Enthusiasm about electric cars and about breakthroughs in battery technology has also sent many EV stocks soaring. This year, however, XPeng stock has lost about 6.6%, paring gains it made in the months after listing.

Many big U.S.-listed Chinese companies, including

Alibaba Group Holding Ltd.

and Inc.,

have in recent years obtained Hong Kong listings, partly as a hedge against risks arising from prolonged U.S.-China tensions.

But because of XPeng’s short history as a U.S. public company, it can’t follow those groups in getting a secondary listing. Instead, it is seeking what is known as a dual primary listing, meaning it will have to comply fully with listing rules in both markets.

There are some benefits, however. Unlike secondary listings, XPeng’s stock will be eligible for inclusion in the city’s Stock Connect program. That means investors in mainland China will be able to buy the shares through a trading link with Hong Kong immediately after its market debut, the person familiar with the situation said.

XPeng delivered 13,340 cars in the first three months of this year, up more than fivefold from the same quarter a year earlier. It recorded a net loss of $120 million for the first quarter of 2021, after making a full-year net loss of $419 million last year.

Write to P.R. Venkat at [email protected] and Joanne Chiu at [email protected]

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Appeared in the June 24, 2021, print edition as ‘EV Maker XPeng To List in Hong Kong.’

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