GUANGZHOU, China — U.S.-listed Chinese language electrical carmaker Xpeng Motors has acquired the inexperienced gentle to hold out an IPO in Hong Kong that might elevate between $1 billion to $2 billion, a supply near the matter instructed CNBC.

It comes as China’s electrical automobile market turns into more and more aggressive.

Hong Kong Exchanges and Clearing’s itemizing committee gave Xpeng the inexperienced gentle, added the supply, who was not licensed to talk publicly concerning the matter.

Xpeng is already listed in New York. The preliminary public providing in Hong Kong shall be barely uncommon.

Whereas Chinese language firms already listed within the U.S. like Alibaba and JD.com have come to Hong Kong to do so-called secondary listings, Xpeng shall be finishing up a twin main itemizing.

Which means it will likely be topic to the foundations and oversight of each U.S. and Hong Kong regulators, which is not the case with a secondary itemizing.

However it’s going to additionally imply the Guangzhou-based electrical carmaker shall be a part of the “Inventory Join” scheme which permits mainland Chinese language traders to purchase shares within the firm. This might doubtlessly improve its pool of traders.

JPMorgan Chase and BOFA would be the most important banks facilitating the itemizing, the supply mentioned.

Xpeng Motors declined to remark when contacted by CNBC.

The plans to boost cash in Hong Kong come as U.S.-China tensions proceed to threaten firms listed on Wall Avenue. The U.S. Securities and Exchange Commission adopted rules earlier this yr that impose stricter auditing necessities on international companies listed in America. It carries the specter of delisting for firms that don’t comply.

However Xpeng can also be elevating cash because it appears to be like to compete in an more and more crowded electrical automobile market in China. Not solely is it dealing with conventional automakers trying to increase their electrical automobile market share, however it’s additionally arising in opposition to market chief Tesla and homegrown start-ups like Nio and Li Auto. The latter two are additionally listed within the U.S.

Xpeng said it delivered 5,686 cars in May — a 483% year-on-year rise and a ten% improve from the earlier month, at a quicker tempo than that seen in April. The corporate is aiming to ship between 15,500 and 16,000 models within the second quarter.

In April, Xpeng launched the P5, its third manufacturing mannequin and second sedan after the P7. The corporate is focusing on boosting its technology together with some autonomous driving options to distinguish itself from its rivals.