Xpeng Motor set the final offering price for both its international offering and its Hong Kong public offering at HK$165 per Class A common share, the Chinese electric vehicle company said Wednesday.

The offering price is equivalent to about $42.52 per ADS, the company said, adding that each ADS represents two shares of Class A common stock.

Xpeng's US-traded shares fell 2.18 percent to $44.32 on Tuesday. The final pricing implies a 4.1 percent discount to its closing price of $44.32 in the US on Tuesday.

Xpeng shares were down 1.85 percent in pre-market trading on Wednesday.

Subject to the approval of the Hong Kong Stock Exchange, its Class A common stock offering shares are expected to begin trading on Wednesday, July 7, 2021, under the stock symbol 9868, the company said.

The gross proceeds of the offering, to the extent the over-allotment option is not yet exercised, are expected to be approximately HK$14.025 billion.

The company has granted over-allotment options to the international underwriters, which they may exercise at any time on or before July 30, whereby the company may be required to issue up to an aggregate of 12,750,000 Class A common shares, Xpeng said.

The company plans to use the net proceeds to expand its product portfolio and develop more advanced technologies, accelerate its business expansion by enhancing brand recognition, acquiring customers through an omnichannel marketing strategy, and increasing sales and service touchpoints domestically and internationally.

Xpeng will also use these funds to enhance production capabilities, including expanding capacity, upgrading production facilities, and developing production technologies. They will also be used for general corporate purposes, including for working capital.

Earlier today, Bloomberg reported that Xpeng had guided its Hong Kong listing at HK$165 per share. That's below the company's previously announced maximum offering price of HK$180.

On June 23, Xpeng passed its listing hearing on the Hong Kong Stock Exchange, and on June 24, it filed a preliminaries prospectus with the U.S. Securities and Exchange Commission showing a maximum offering price of HK$180 per share or $23.19, equivalent to $46.39 per ADS, for a public offering in Hong Kong.

Xpeng's public offering in Hong Kong began at 9 am last Friday and has been 2 times oversubscribed in less than two business days.

Xpeng will offer 85 million Class A common shares in a global offering, including an international offering of 80.75 million Class A common shares and a Hong Kong public offering of 4.25 million Class A common shares.

As is customary for companies listed in Hong Kong, Xpeng is expected to announce on July 6 that investors have received placements. Investors will be able to trade on the grey market from 16:15-18:30 Beijing Time on the same day.

(Source: CnEVPost)