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HONG KONG – Chinese manufacturer Xpeng of electric cars (EV) has increased the size of its US first public offering (IPO) to about $ 1.49 billion, said two sources with direct knowledge of the matter.
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The company will price its shares at $ 15 each, the sources said, after first announcing that they would be sold for $ 11 to $ 13 when the deal was launched on Friday.
The 2020 Xpeng G3 model comes in two versions and starts at around $ 20,000.
Xpeng, which counts Chinese e-commerce titan Alibaba among its supporters, had initially aimed to raise $ 1.11 billion.
It had planned to sell 85 million US depository shares (ADS), but increased that to about 99.7 million shares to higher than expected demand from investors, the sources said on condition of anonymity, as the information is not yet public .
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Xpeng declined to comment.
Given the new size of the deal, Xpeng would be valued at about $ 11.2 billion after its IPO. Its shares will begin trading in New York on Thursday.
There is also a so-called greenshoe option whereby within the next 30 days another 14.96 million shares could be issued allowing Xpeng to raise a further $ 224.4 million.
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