US-listed Chinese EVs tap banks for HK listings

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US-listed Chinese electric vehicle manufacturers Nio, XPeng and Li Auto have picked banks for their Hong Kong listings this year, said people with knowledge of the matter.

Nio is working with Credit Suisse and Morgan Stanley for a secondary listing in the city and is also considering an A-share listing, said the people.

It is likely to sell a stake of about 5% in the Hong Kong listing, meaning the deal could raise about US$3.4bn based on the company’s market capitalisation of US$68.18bn on Friday.

XPeng is working with Bank of America and JP Morgan for its planned float, while Li Auto is working with Goldman Sachs and UBS, said the people. Both deals are expected to come as early as the third quarter of the year to raise about US$1bn–$2bn.

As XPeng was listed in in the US in August 2020 and Li Auto in July 2020, both companies cannot list in Hong Kong through a secondary listing as that would require a good track record of at least two financial years of regulatory compliance on another qualifying exchange.

The duo are considering applying for a Hong Kong dual primary listing instead, said the people, which does not require the two-year track record but comes with more disclose requirements.

Shares of Nio, Xpeng and Li Auto have dropped 11%, 12.5% and 9% respectively so far this year.

XPeng declined to comment, while Li Auto and Nio did not respond to emails seeking comment.