Electric-car maker XPeng Inc. has secured approval to sell shares in Hong Kong, making it the latest U.S.-listed Chinese company seeking to tap investors closer to home.
XPeng, which published a preliminary listing document Wednesday, aims to raise as much as $2 billion from the stock sale and begin trading on the city’s stock exchange in July, a person familiar with the situation said. The Chinese group is already traded on the New York Stock Exchange and has a market value of about $32 billion.
At that maximum size, such a share sale would mean the loss-making XPeng has been able to raise more than $6 billion from stock investors in less than a year. It raised $1.7 billion from an initial public offering on NYSE last August, and sold another $2.5 billion of U.S. stock in December.
Chinese electric-vehicle makers such as XPeng, NIO Inc. and Li Auto Inc. have joined American EV companies in tapping U.S. markets for funds, capitalizing on investors’ bullishness about the industry’s prospects. Enthusiasm about electric cars and about breakthroughs in battery technology has also sent many EV stocks soaring. This year, however, XPeng stock has lost about 6.6%, paring gains it made in the months after listing.
Many big U.S.-listed Chinese companies, including Alibaba Group Holding Ltd. and JD.com Inc., have in recent years obtained Hong Kong listings, partly as a hedge against risks arising from prolonged U.S.-China tensions.