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China’s US-listed EV trio are coming to Hong Kong, aiming to raise a combined US$5 billion in secondary listings this year, sources say

  • NIO, Xpeng and Li Auto are aiming to each sell at least 5 per cent of their enlarged share capital in Hong Kong, according to sources
  • The total amount of money raised could be around US$5 billion, they said

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NIO’s chief executive William Li Bin unveils the ET7 all-electric ET7 sedan at the carmaker’s global launch ceremony at the Sichuan provincial capital of Chengdu on January 9, 2021. 09JAN21 Photo: Daniel Ren
Reuters
US-listed Chinese electric vehicle (EV) makers Li Auto Inc, NIO and Xpeng plan to list in Hong Kong as soon as this year, to tap an investor base closer to home, said three people with direct knowledge of the matter.
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The trio each aim to sell at least 5 per cent of their enlarged share capital in the Asian financial hub, the people said. Based on their New York market capitalisation on Monday, proceeds could total around US$5 billion.

The EV makers have been working with advisors on the sales which could begin as early as mid-year, one of the people said. The three are looking to take advantage of growing demand from prospective investors in Asia, said another of the people, who declined to be identified due to confidentiality constraints.

Li Auto, NIO and Xpeng declined to comment.

The plans come as the trioincrease capital raising efforts to fund technology development and expand sales networks, to better compete in the world’s biggest EV market where US peer Tesla Inc is boosting sales of its China-made vehicles.
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Auto executives have marked 2021 as a crucial year for EV makers to seize market share as the industry expects Chinese sales of new-energy vehicles (NEVs) to jump almost 40 per cent from last year to 1.8 million units.

Selling shares in Hong Kong would also add the trio to a slew of New York-listed Chinese firms seeking a presence on more local exchanges against a backdrop of political tension between the United States and China.
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