Chinese electric vehicle company XPeng Motors has passed the hearing for a dual primary listing at the Hong Kong Stock Exchange on Wednesday.
JP Morgan and Bank of America Securities are co-sponsors, according to its prospectus filed with the HKex.
XPeng will come to Hong Kong by way of a "dual primary listing" mainly because it had been listed on the US for a relatively short period of time and did not meet the secondary listing requirement of having at least two years of good regulatory compliance record on another eligible exchange.
Under a dual primary listing, XPeng would need to meet the regulatory requirements of both exchanges, resulting in higher listing costs and compliance requirements.
The benefit of "dual primary listing" is that it can meet the access requirements of the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, making it easier for A-share investors to invest in it indirectly, which will result in more active stock transactions.
According to the HKEx's current requirements, secondary listings cannot be included in the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect for the time being.
XPeng's smart electric vehicle deliveries for 2018 to 2020 are 29, 12,728 and 27,041, respectively, the prospectus shows.
XPeng electric vehicle deliveries for the three months ending March 31, 2020 were 2,271 units, compared to 13,340 units for the same period in 2021.
XPeng delivered 5,147 smart electric vehicles in April and 5,686 in May 2021 and 15,500 to 16,000 in May 2021 and is expected to deliver 15,500 to 16,000 in the second quarter of 2021.
XPeng stated that it expects deliveries in the second quarter of 2021 to at least meet or exceed this guidance range.
As of March 31, 2021, XPeng has delivered 30,102 G3s and 23,036 P7s to customers.
XPeng plans to begin deliveries of the third smart electric vehicle, the P5, in the fourth quarter of 2021 and the mid-cycle refresh of the G3, the G3i, by the end of the third quarter of 2021. The company plans to launch the fourth smart electric vehicle in 2022.
As of March 31, 2021, XPeng had 6,132 employees in China and the United States. Of these, 39.8 percent are focused on R&D, while 62.1 percent, 16.3 percent and 21.5 percent are dedicated to vehicle design and engineering, autonomous driving and intelligent operating systems, respectively.
In 2022, XPeng will launch a new SUV model, positioned as a mid-size SUV.
The South China Morning Post reported earlier today that XPeng received approval from the Hong Kong Stock Exchange to list there, raising $1.1 billion in capital. But according to Bloomberg, XPeng is expected to raise about $2 billion.
XPeng's listing in Hong Kong is a dual primary listing and the first case of a significant Chinese company in Hong Kong and the United States in three years, according to the South China Morning Post report.
Unlike other Chinese companies with secondary listings in Hong Kong that cannot be accessed through the Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect, XPeng's secondary listing can meet the access conditions, facilitating A-share investors to invest and active stock transactions.
XPeng was founded in 2014 and is headquartered in Guangzhou.
On August 27, 2020, XPeng was listed on the New York Stock Exchange under the stock ticker "XPEV".
By the end of May 2021, XPeng's cumulative deliveries for the year reached 24,173 units, more than five times the number of units delivered in the same period last year.
XPeng P7 deliveries in May reached 3,797 units, the highest monthly delivery record since the mass delivery in July 2020.
XPengs' average sales price has exceeded 250,000 yuan ($39,000) this year, a result of the brand's positioning, He Xiaopeng, chairman and CEO of the Chinese electric car company, said earlier this month.
He said three of the top 10 electric car brands in China currently sell for more than 250,000 yuan, including Tesla and XPeng.