Shares of Xpeng Rise 1.8% in Hong Kong Dual Primary Listing Debut

xpeng
Xpeng’s listing ceremony (Source: Xpeng)

Xpeng’s shares rose 1.8% at the opening of trading to reach 168 Hong Kong dollars a piece, as the company carried out a dual primary listing on the Hong Kong Stock Exchange.

Xpeng initially issued 85 million Class A ordinary shares at a price of 165 Hong Kong dollars each, raising 14.02 billion Hong Kong dollars ($1.8 billion) in the process.

The Chinese electric carmaker already listed in the US in August of last year. Unlike the more common secondary listing, Xpeng’s share offering is a dual primary listing, which means it will abide by stricter rules and oversight from both US and Hong Kong regulators.

“Being committed to becoming the transportation explorer in the future, we will take the Hong Kong IPO as an opportunity to open a new chapter of rapid development of the company,” He Xiaopeng, chairman and CEO of Xpeng, said at the listing ceremony.

Many executives from Chinese tech giants and investment companies attended the listing ceremony in Guangzhou, including Alibaba, Primavera Capital and 5Y Capital.

Known for its P7 sedan and G3 SUV, the Guangzhou-based electric carmaker delivered 6,565 vehicles in June, representing a 617% increase year-on-year. The company also achieved a quarterly record of 17,398 deliveries in the second quarter of this year.

The US-listed firm has also tied up with the Wuhan municipal government to build a manufacturing base with an annual capacity of 100,000 units, according to a statement in April. The design capacity of its three factories in Zhaoqing, Guangzhou and Wuhan is expected to reach 300,000 units.

Earlier this year, the US Securities and Exchange Commission adopted rules that impose stricter auditing requirements on foreign firms listed in the US.

SEE ALSO: XPeng Announces Global Offering of 85 Million Shares at HK$165 Per Share

Meanwhile, domestic regulations are becoming stricter and and more comprehensive, with Didi Chuxing representing the latest high profile case. Three days after its debut on the NASDAQ, the ride-hailing giant has faced orders to be removed from app stores due to its suspected serious illegal collection of personal information.