Bloomberg cited sources to report that Xpeng Inc. was preparing for a possible stock market debut with its flying-car business.
The Chinese manufacturer of electric vehicles will take a new step to go beyond the traditional auto industry.
Bloomberg reported that the company had quietly started working on an initial public offering (IPO) of its aerial mobility division in Hong Kong.
China is accelerating its policy to support the low-altitude sector, which includes drones and flying taxis.
Xpeng’s plan shows how the company is positioning its car business as a platform to launch more innovative transport ventures.
Banks are appointed
Bloomberg reported that Xpeng hired JPMorgan Chase & Co., and Morgan Stanley for the preparations of an IPO.
Banks have been chosen to provide advice on a Hong Kong listing for Xpeng aeroht.
According to the report, the unit filed confidentially a request for an share sale which could happen as early as this year. Discussions are private, and they may change. Deliberations about timing and structure continue.
Listing plans evolve
Last year, experts said banks were invited to bid for a role in a possible Xpeng Aeroht listing either in Hong Kong or US.
Hong Kong appears to be the most popular venue at the moment, but the final decision is not confirmed.
Due to the confidential nature of this filing, details like valuation, deal size and cornerstone investors are not disclosed.
Beyond cars: a strategy for beyond the automobile
Xpeng is working hard to improve its automotive core operations and invest in new technologies.
It is expanding the company’s presence with extended-range vehicles and increasing its software for autonomous driving. The goal is to create a base profitable business which can sustain longer-term innovations.
This strategy is the basis for its development of the flying car division, recently rebranded as Aridge internationally.
Business is seen to be well-positioned to profit from China’s drive to promote low-altitude economies, which focus on the commercial use of airspace near to ground level, such as flying taxis or delivery drones.
Manufacturing and Funding
Xpeng Aeroht runs a intelligent flying car plant of 120,000 square metres in Guangzhou. Once the facility reaches its full capacity, it will be able to produce an aircraft every 30 seconds.
Customers can expect to receive the first flying vehicle mass-produced by this unit in 2026.
He Xiaopeng, the chairman and CEO of Xpeng as well as He Xpeng are part owners in the flying car company.
The company has raised capital from external sources in the past, such as a funding round of $150 million completed in 2024.
Xpeng shares rose 69% in the last 12 months. According to data available, the market cap of the company is about $19 Billion.
As new information becomes available, this post Xpeng prepares Hong Kong IPO of flying car unit while China supports air mobility will be updated.
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