GUANGZHOU, China — Shares of U.S.-listed electric vehicle maker Xpeng rose at the open before turning negative on Wednesday in their Hong Kong debut

Shares of Chinese Tesla rival Xpeng fall on Hong Kong debut

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2021-07-07 03:00:05

GUANGZHOU, China — Shares of U.S.-listed electric vehicle maker Xpeng rose at the open before turning negative on Wednesday in their Hong Kong debut.

Xpeng issued 85 million Class A ordinary shares at a price of 165 Hong Kong dollars each. Those shares opened at 168 Hong Kong dollars, a 1.8% rise. Shortly after, they fell to 162.50 Hong Kong dollars, around 1.5% below its listing price.

The electric carmaker is already listed in the U.S. Usually, Chinese companies listed on Wall Street will do what's known as a secondary listing, usually in Hong Kong. This is where a company, listed on one exchange, goes on to sell shares on another.

But Xpeng's share offering is a dual-primary listing. That means it will be subject to the rules and oversight of both U.S. and Hong Kong regulators, which isn't the case with a secondary listing.

The electric carmaker said last month that it would price shares at no more than 180 Hong Kong dollars each. Xpeng raised gross proceeds of 14.02 billion Hong Kong dollars ($1.8 billion).

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