Xpeng Prices Shares 8% Below Upper Range for Hong Kong Secondary Listing
Xu Wei
DATE:  Jul 01 2021
/ SOURCE:  Yicai
Xpeng Prices Shares 8% Below Upper Range for Hong Kong Secondary Listing Xpeng Prices Shares 8% Below Upper Range for Hong Kong Secondary Listing

(Yicai Global) July 1 -- Xpeng Motors has priced its shares 8.3 percent below the marketed upper range for its HKD14 billion (USD1.8 billion) secondary offering, as the firm prepares to become the first Chinese premium electric vehicle startup to list in Hong Kong.

Xpeng priced the 85 million new shares at HKD165 (USD21.25) each, equivalent to USD42.52 per American depository share, the Guangzhou-based company said in a filing to the Hong Kong Stock Exchange yesterday. It had marketed them at up to HKD180. The sale price is also 4 percent less than Xpeng’s closing price of USD44.32 in New York on June 29.

Formed in 2014, Xpeng went public on the New York Stock Exchange for USD15 a share last August. Its stock has more than doubled in value over the past year. 

Its Hong Kong-listed equity will trade under the ticker HKG: 9868 from July 7. Xpeng's domestic rivals Nio and Li Auto have not yet issued shares in the city.

Xpeng will use the proceeds to expand output and product mix, while developing more advanced technologies, according to the latest prospectus. It aims to attract more clients by improving its branding and marketing strategy and is also eyeing expansion overseas. 

Founder He Xiaopeng and parties acting in concert own nearly 21.8 percent in the carmaker, which makes them the controlling shareholder. Taobao China owns 11.9 percent, IDG Capital 4.8 percent, and co-founder Xia Heng, along with his affiliates, 3.8 percent.

Xpeng was approaching profitability last year before the costly first quarter of 2021. In the first three months of this year, its net loss widened 22 percent to CNY787 million (USD121.7 million) from a year ago. But revenue jumped more than seven times to CNY3 billion (USD463.9 million).

Last year, the firm's net loss narrowed 27 percent to CNY2.7 billion, according to the prospectus. Revenue almost tripled to CNY5.8 billion.

Xpeng’s share of China’s electric vehicle market was 2.8 percent last year, ranking it 12th, according to IHS Markit. In the mid to high-end new energy vehicle market, it was fourth with a 6.6 percent share.

Its New York-traded shares [NYSE: XPEV] inched 0.2 percent higher to USD44.42 yesterday.

Editor: Emmi Laine, Xiao Yi

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Keywords:   HK,Xpeng Motors