Xpeng (XPEV) Leaps After Receiving a Green Light From Regulators to Raise Up To $2 Billion in Hong Kong IPO

June 23, 2021 6:18 AM EDT
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Xpeng (NYSE: XPEV) has been allowed to advance its plans to raise funds through the Hong Kong IPO, Reuters reports.

XPEV has received a green light from the Hong Kong Exchanges and Clearing committee to do a dual primary listing. This means the company will be subjected to rules and regulations of both U.S. and Hong Kong regulators, as the shares are already available for trading in New York and has a market capitalization of $32 billion.

A CNBC report says that XPEV plans to raise between $1 billion and $2 billion in the upcoming IPO. JPMorgan Chase and BOFA will act as the main banks working on the listing.

The EV company delivered 5,686 cars in May, which represents an increase of 483% compared to a year ago. For this quarter, Xpeng is aiming to deliver between 15,500 and 16,000 vehicles.

Earlier this month, Citi analyst Jeff Chung raised the price target on XPeng to $50.30 (from $50.00) while maintaining a “Buy” rating. He argues that based on the terminal value, Xpeng is more valuable than Nio (NYSE: NIO).

Shares of the company are up over 5% in pre-open Wednesday.

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