- Chinese electric car maker Xpeng plans to raise $ 1.5 billion in an initial public offering, he said Thursday.
- Tesla’s competitor said it would sell 99.7 million U.S. depository shares at $ 15 each.
- It increased the expected total largely due to strong investor demand for IPOs from electric auto makers. According to Xpeng’s initial forecast, the shares were selling for between $ 11 and $ 13 each.
- Other Chinese electric vehicle makers, including Nio and Li Auto, have seen strong rallies on US stock exchanges, with investors betting heavily on the future of electric cars.
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Chinese automaker Xpeng aims to raise $ 1.5 billion in an initial public offering on the New York Stock Exchange, the company said Thursday.
The electric car maker said it would sell 99.7 million U.S. depository shares at an offer price of $ 15 each. The level is above its previous range of $ 11 to $ 13 per share due to strong demand for the supply. Each US custodian share is worth two ordinary Xpeng shares.
The 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 automaker will trade under the symbol XPEV. Xpeng shares are expected to start trading on Thursday and the offer is expected to close on Monday.
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Xpeng’s IPO marks Tesla’s latest Chinese rival to raise capital in the United States. Nio debuted in the market in September 2018 at a lower than expected bid price, but more than doubled, with investors betting heavily on the electric vehicle revolution. Li Auto followed with an IPO on July 30 that raised $ 1.1 billion.
The Chinese automaker’s latest IPO follows the opening of Tesla’s Shanghai plant. The facility aims to strengthen the company’s presence in the country and respond to its growing interest in electric vehicles. Tesla started delivering Model 3 sedans to China in December and has since started producing its Model Y crossover at the new plant.
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Chinese automakers have benefited from a second wind after posting weak sales in 2019. Nio led the charge after receiving around $ 1 billion in funding from state-owned companies. Strong IPO demand from electric auto makers suggests that investor interest in the sector has only grown since.
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