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- Chinese electric car maker Xpeng aims to raise $ 1.5 billion in a first public offering, it said Thursday.
- The Tesla competitor said it would sell 99.7 million U.S. depository shares for $ 15 each.
- It increased the total it had planned in large part due to strong investor demand for IPOs for electric car manufacturers. Xpeng’s first venture saw shares sell for $ 11 to $ 13 each.
- Other Chinese manufacturers of EV, including Nio and Li Auto, have enjoyed strong meetings on U.S. exchanges as investors heavily bet on the future of electric cars.
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Chinese automaker Xpeng is aiming for $ 1.5 billion in an initial public offering on the New York Stock Exchange, the company said on Thursday.
The electric car maker said it would sell 99.7 million U.S. depository shares for an offer price of $ 15 each. The level is higher than its previous range of $ 11 to $ 13 per share due to strong demand for supply. Each U.S. shareholder is worth two shares of Xpeng’s common stock.
Underwriters of the deal – Credit Suisse, JPMorgan, and Bank of America – will have a 30-day option to buy an additional 15 million shares, Xpeng said. The car manufacturer will trade under the ticker XPEV. Shares of Xpeng are expected to start trading on Thursday, and the offer is closed on Monday.
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Xpeng’s IPO marks China’s latest rival Tesla to raise capital in the US. Nio made its market debut in September 2018 at a lower price than expected offer price, but has more than doubled as investors heavily bet on the electric car revolution. Li Auto followed up with an IPO on July 30 that raised $ 1.1 billion.
The latest Chinese carmaker IPO follows the opening of Tesla’s plant in Shanghai. The facility aims to stimulate the company’s presence in the country and meet its growing interest in electric cars. Tesla started supplying Model 3 sedans in China in December and has since started producing its Model Y crossover in the new factory.
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Chinese carmakers have enjoyed a second wind after posting weak sales in 2019. Nine led the charge after receiving about $ 1 billion in funding from state-owned companies. Strong demand for IPOs for electric cars suggests that the interest of investors in the sector has only swelled since then.
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