Following other big tech firms such as Baidu and Bilibili, Xpeng is the latest Chinese company to list on the Hong Kong stock exchange. The electric car manufacturer is already listed on Nasdaq and is rapidly becoming a strong rival to Tesla in China. 

Xpeng raised HK$14 billion ($1.8 billion) in its initial public offering ahead of the start of trade on Wednesday. The company issued 85 million Class A ordinary shares at HK$165 ($21.20) each. Its shares traded approximately 1.8% higher on opening. The IPO comes as Chinese firms are put under pressure to list closer to home. Recently, Chinese transport company DiDi fell under scrutiny over data security when it listed overseas. 

Xpeng’s performance has improved considerably over the years, having previously proposed, and been rejected for, a merger with another struggling electric car manufacturer Nio. In its US IPO last year, Xpeng raised $1.5 billion and in the fiscal year 2020, and delivered over 27,000 vehicles to consumers. If successful, Xpeng’s performance in Hong Kong could facilitate similar moves by other electric vehicles companies.