- The stock price of Xpeng Inc (NYSE: XPEV) increased by over 4% pre-market. This is why it happened.
The stock price of Xpeng Inc (NYSE: XPEV) increased by over 4% pre-market. Investors are responding positively to Xpeng Motors planning to launch an IPO in Hong Kong, which could raise between $1 billion to $2 billion according to CNBC’s sources.
CNBC’s source pointed out that Hong Kong Exchanges and Clearing’s listing committee had given Xpeng the green light to pursue the IPO in Hong Kong. Xpeng is already listed on the NYSE. And rather than doing a secondary listing in Hong Kong, Xpeng is reportedly launching a dual primary listing, meaning it will be subject to the rules of both the U.S. and Hong Kong regulators.
Xpeng will be part of a “Stock Connect” program, which relaxes the restrictions that had previously split the Chinese stock market between shares targeted at local investors and those available for international investors.
The funds raised from the IPO will be essential for Xpeng as the rivalry of the electric vehicle market in China has been intensifying. In May, Xpeng delivered 5,686 vehicles — which is up 483% year-over-year and up 10% from the previous month.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.