Three electric vehicle manufactures from China are planning for a joint listing in the Hong Kong Stock Exchange whereby they will raise $5 billion from the IPO. The companies include Nio Inc. (NIO), Xpeng Inc. (XPEV) and Li Auto Inc. (LI). All the three EV makers are listed on United States stock markets.
The companies said the listing may happen anytime this year as they settled for their home base for a secondary listing.
Sources directly involved in the matter said the EV makers are aiming to sell at least 5% of their enlarged share capital in the Asian financial hub. The IPO value of $5 billion was computed based on the companies’ market capitalization on New York Stock Exchange.
The companies have been engaging advisors concerning the sales which are rumored could start in the second quarter of the year. The sources further disclosed the companies want to capitalize on the increasing demand of investors in Asia.
The idea of the companies working together as a trio come about with an aim of raising adequate funds to fund their technology research and development and also increase their sales network.