Crypto EcoBlog
The increasing level of tension between authorities in China and the United States is forcing the hands of many US-listed Chinese companies to list on the Hong Kong stock exchange as a way of protecting themselves against both governments.Per a report from CNBC, Guangzhou-based electric car maker Xpeng is on the verge of raising almost billion via its listing on the Hong Kong stock exchange.According to the report, Tesla‘s rival had said it would be issuing 85 million Class A ordinary shares at a price of 180 Hong Kong dollars (.19) each. It was also revealed that the final offer price will then be set on or before the end of June. Going by this, it means Xpeng would be able to raise 15.3 billion Hong Kong dollars at the maximum offer price, which roughly translates to .97
Topics:
<title> considers the following as important:
This could be interesting, too:
Chayanika Deka writes ISIS Crypto Fundraiser Mohammed Chhipa Faces 20 Years After Conviction in Virginia
Chayanika Deka writes South Korean Ex-Lawmaker Faces 6-Month Prison Sentence Over Hidden Crypto Holdings
Felix Mollen writes Crypto All-Stars Set for DEX Launch Monday 23rd December After M Presale – Price Pump to Come?
Chayanika Deka writes Treasury Cracks Down on North Korean Sanctions Evasion Through Crypto Laundering
The increasing level of tension between authorities in China and the United States is forcing the hands of many US-listed Chinese companies to list on the Hong Kong stock exchange as a way of protecting themselves against both governments.
Per a report from CNBC, Guangzhou-based electric car maker Xpeng is on the verge of raising almost $2 billion via its listing on the Hong Kong stock exchange.
According to the report, Tesla‘s rival had said it would be issuing 85 million Class A ordinary shares at a price of 180 Hong Kong dollars ($23.19) each. It was also revealed that the final offer price will then be set on or before the end of June.
Going by this, it means Xpeng would be able to raise 15.3 billion Hong Kong dollars at the maximum offer price, which roughly translates to $1.97 billion, before related costs, such as underwriting fees are removed.
Interestingly, this affirms a previous report where it was indicated that the electric carmaker could be looking to raise new funds for its operations.
Xpeng’s new listing is quite unusual as it is another primary listing. While companies like Alibaba and JD.com have employed secondary listing tactics, as they have a main listing location such as the United States, and they are also selling their shares on another exchange. The carmaker is not towing the same path.
The CNBC report revealed that Xpeng’s new listing in Hong Kong would lead to a “dual-primary listing. That means it will be subject to the rules and oversight of both US and Hong Kong regulators.”
Another interesting aspect of this new listing is that Xpeng could still make more than the projected $2 billion if demand for its stock is high which would lead to the firm and its underwriters issuing more shares that would inadvertently lead to an increase in what the company would get from its listing.
The proceeds of the listing will be channeled towards the development and expansion of the product, “Xpeng said it would use the proceeds from the Hong Kong listing to expand its products and develop more advanced technologies, as well as marketing and expanded manufacturing.”
In recent times, the electric car market in China is growing as startups like Nio, Li Auto, Tesla and a host of others are competing for a share of the market.
Tensions between US and Beijing Pushing the Need for Xpeng Listing in Hong Kong
The increasing level of tension between authorities in China and the United States is forcing the hands of many US-listed Chinese companies to list on the Hong Kong stock exchange as a way of protecting themselves against both governments.
The Securities and Exchange Commission (SEC) has imposed stricter auditing requirements on foreign companies listed in the country. Failure to comply with this policy by these companies could lead to delisting.
Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.