Chinese electric vehicle company Xpeng Motors is offering 85 million Class A common shares in a global offering, including an international offering of 80.75 million shares and a Hong Kong public offering of 4.25 million shares, according to its preliminary prospectus filed with the US Securities and Exchange Commission.
Xpeng currently has 802.47 million shares outstanding and the latest offering will increase the number to 887.47 million.
By comparison, Nio's total shares outstanding is currently 1.63852 billion and Li Auto's is 904.64 million.
Xpeng applied to trade in the Hong Kong market under the ticker symbol "9868", stating that the maximum offering price for the Hong Kong public offering was HK$180 per share or US$23.19, which is equivalent to US$46.39 per ADS.
The company will determine the offer price for both the international offering and the Hong Kong public offering by reference to the closing price of its ADSs on the last trading day before the pricing of the global offering, which is expected to be on or about June 30, 2021.
Xpeng says the information in its preliminary prospectus is not complete and may be changed.
Xpeng passed the hearing for a dual primary listing at the Hong Kong Stock Exchange on Wednesday.
It 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 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 is up 0.7 percent in pre-market trading on Thursday.
