GUANGZHOU, China — Chinese language electrical carmaker Xpeng will increase as much as practically $2 billion in a Hong Kong itemizing.

The Guangzhou-based firm mentioned on Thursday it’s going to concern 85 million Class A strange shares at a worth of not more than 180 Hong Kong {dollars} ($23.19) every. A last supply worth shall be set on or round Jun. 30.

On the most supply worth, Xpeng would increase 15.3 billion Hong Kong {dollars} ($1.97 billion) earlier than associated prices reminiscent of underwriting charges.

CNBC reported earlier this week that Xpeng is trying to increase between $1 billion and $2 billion.

Xpeng is already listed in New York. Its share providing in Hong Kong is uncommon as a result of it isn’t a secondary itemizing, as firms together with Alibaba and JD.com have accomplished. A secondary itemizing is when an organization already has a primary itemizing location reminiscent of america, and it then sells shares on one other trade.

As a substitute, Xpeng is doing what’s referred to as a dual-primary itemizing. Which means it will likely be topic to the principles and oversight of each U.S. and Hong Kong regulators, which is not the case with a secondary itemizing.

Relying on demand, Xpeng and its underwriting funding banks may concern extra shares, which might presumably increase the amount of cash the corporate will get from the itemizing.

Xpeng mentioned it’s going to use the proceeds from the Hong Kong itemizing to develop its merchandise and develop extra superior applied sciences, in addition to advertising and marketing and expanded manufacturing.

U.S.-listed Chinese language firms have seemed to listing in Hong Kong as a approach to hedge towards tensions between China and america.

Earlier this year, U.S. Securities and Exchange Commission adopted rules that impose stricter auditing necessities on international companies listed in America. These necessities carry the specter of delisting for firms that run afoul of the principles.

Xpeng faces rising competitors in China from different start-ups like Nio and Li Auto, in addition to Tesla and conventional automakers which might be getting into the electrical automobile market.