Xpeng Motors, an EV maker in China, plans to raise $ 1.1 billion in New York IPO

08/24/2020 World


The company has offered an initial public offering and plans to sell 85 million US Depositary shares, each with two ordinary shares in Xpeng.

It aims to price its share between $ 11 and $ 13 per share, according to a submission regulation submitted on Friday. At the upper end of that range, the company would be valued at roughly $ 9.2 billion.

The IPO has remarkably seen how much control Chinese companies that trade in the United States have against regulators there. Earlier this month, for example, an advisory board chaired by U.S. Treasury Secretary Steven Mnuchin advised that regulators require much greater access to the accounts of Chinese companies wishing to participate in U.S. stock exchanges.
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But Xpeng still believes the United States is the best for its IPO, as it is by far the deepest capital market in the world, according to a person familiar with the matter. The startup also considers itself more of a tech company than a car company, and believes investors at state have a better understanding of their product and technologies than investors elsewhere, the person said.

Xpeng, based in Guangzhou, was founded in 2015 and has offices in both China and Silicon Valley.

It is not the only Chinese electric automaker that is chasing investors in the United States. One competitor, Li Auto, went public on the Nasdaq last month. And shares of Nio (NIO), another well-known candidate, have so far picked up 250% in New York this year, according to data from Refinitiv.
Xpeng is part of a full field of electric car manufacturers in China, the largest car market in the world. The American car manufacturer Tesla (TSLA) recently upped the game in the country by reducing prices for consumers and producing cars at its Shanghai Gigafactory.
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Xpeng is selling two models of electric cars: the G3 SUV, which was launched in 2018, and the P7 sedan, which debuted earlier this year. The company said in its latest submission that it had delivered nearly 19,000 units and about 2,000 units of the G3 and P7 respectively, as of the end of July.

It also plans to add a new sedan to its lineup next year.

Xpeng is known for its fundraising capabilities and is supported by inoster of heavyweight investors, including Alibaba (BABY), Xiaomi, Sequoia Capital and Hillhouse Capital. Earlier this month, the motorist revealed that it had raised $ 900 million in a new round of financing, less than a year after receiving another $ 400 million from investors.

The company plans to start trading under the ticker symbol “XPEV.” It is expected to make its market debut on Thursday, according to a person familiar with the matter.

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