XPeng has hired banks to work on an initial public offering of its flying car unit in Hong Kong, according to people familiar with the matter, Bloomberg reported.

XPeng shares gained 1.9% in Hong Kong, and rose 2.6% in US overnight trading.

The Chinese electric-vehicle maker picked JPMorgan Chase & Co. and Morgan Stanley to prepare for a listing of XPeng Aeroht, the people said, asking not to be identified because the information is private. It has filed confidentially for a share sale that may take place as soon as this year, the people said.

Deliberations are ongoing and the IPO plan may change, the people said.

Representatives for XPeng, JPMorgan and Morgan Stanley declined to comment.

People familiar with the matter said last year that banks had been invited to pitch for a role on an XPeng Aeroht IPO in Hong Kong or the US.