Sources: US-listed Chinese EV firms eye combined $5b in Hong Kong IPO

“US-listed Chinese electric vehicle makers Li Auto, Nio, and Xpeng plan to list in Hong Kong as soon as this year, tapping a growing investor base closer to home,” reported Reuters, citing people privy to the matter.

Details:

• Each of the three EV firms will sell at least 5% of enlarged share capital in the Hong Kong market and could raise a combined US$5 billion in proceeds based on their New York market capitalization on Monday.
• The share sale could begin as early as the middle of this year.
• Xpeng is also considering a third listing on the Nasdaq-like Shanghai Star Market.

Context:

• Li Auto, Nio, and Xpeng have raised US$14.7 billion in the US market since 2018.
• The move comes as the three firms seek more capital to develop its technology and expand the market to compete with US-based Tesla, the report noted.