Chinese EV Maker XPeng Plans to List in Hong Kong

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 electric-vehicle makers such as XPeng, NIO Inc. and 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 JD.com 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]