XPeng Motors has been more than 5 times oversubscribed after launching its Hong Kong public offering for subscriptions on Friday.
As of Tuesday evening, XPeng's public offering in Hong Kong had been subscribed with a margin of HK$4.82 billion, which means about 5.3 times oversubscription considering its public offering will raise HK$765 million, the Hong Kong Economic Times reported on Wednesday.
Futu Holdings lent a margin of HK$3.55 billion, Valuable Capital lent HK$500 million, Phillip Securities lent HK$380 million and Bright Smart lent HK$280 million, according to the report.
Typically, shares of companies to list in Hong Kong are oversubscribed, with multiples varying depending on investor enthusiasm.
XPeng will offer 85 million Class A common shares in a global offering, which includes an international offering of 80.75 million Class A common shares and a Hong Kong public offering of 4.25 million Class A common shares.
XPeng's Hong Kong public offering begins at 9 am local time Friday at a maximum offering price of HK$180 per share, according to the company's prospectus.
Earlier today, XPeng set the final offering price for both its international offering and its Hong Kong public offering at HK$165 per Class A common share.
That offering price equates to about $42.52 per ADS, the company said, adding that each ADS represents two shares of Class A common stock.
This represents a 4.1 percent discount to its closing price of $44.32 on Tuesday in the US.
Subject to the approval of the Stock Exchange of Hong Kong, its Class A common stock offering shares are expected to begin trading on Wednesday, July 7, 2021, under the stock symbol 9868, the company said.
As is customary for companies listed in Hong Kong, XPeng is expected to announce on July 6 that investors have received the placement. Investors can trade on the grey market from 16:15-18:30 Beijing Time on the same day.
For investors subscribing to XPeng shares in Hong Kong, a brokerage fee of 1 percent, a 0.0027 percent Hong Kong Securities and Futures Commission transaction fee and a 0.005 percent Stock Exchange transaction fee will apply.
This means that the initial cost for an investor to buy XPeng in Hong Kong is at least HK$18,181.386.