Aug 28, 2020 02:16 AM

Electric-Car Upstart Xpeng Raises $1.5 Billion in Expanded IPO

The Xpeng Motors G3 electric SUV. Photo: Bloomberg
The Xpeng Motors G3 electric SUV. Photo: Bloomberg

(Bloomberg) — Chinese electric-car startup Xpeng Inc. raised about $1.5 billion in a U.S. initial public offering, expanding the size of its share sale and pricing the shares above a marketed range.

The company sold 99.7 million American depositary shares for $15 each, based on a filing Wednesday with the U.S. Securities and Exchange Commission. The Guangzhou-based company had marketed 85 million shares for $11 to $13 apiece. The company was valued in the offering at $10.8 billion based on the outstanding shares listed in its filings.

Xpeng's American depositary shares finished its first day trading at $21.22 in New York trading Thursday after rising as much as 67% from the offering price of $15.

Strong share price gains this year by Tesla Inc. and Nio Inc. have stoked investor demand in the electric vehicles sector and prompted similar companies to go public. Li Auto Inc., another Chinese EV startup, increased the size of its U.S. IPO in July to raise $1.26 billion including the so-called greenshoe shares, or those sold in excess of the original plan. The stock has since more than doubled from its offer price.

For the six months ended June 30, Xpeng said it had a net loss of $113 million on revenue of $142 million. Xpeng delivered 18,741 of its first vehicle, the G3 SUV, through July 31, according to the company’s filings. It started deliveries of its second model, the P7 sedan, in May, shipping 1,966 units by July 31, according to its filings.

The depositary shares will be worth two ordinary Class A shares. The company’s voting power will be controlled by holders of Class B shares, which will carry 10 votes each, and Class C shares with five votes each.

Guangzhou-based Xpeng closed its latest funding round for a total of $900 million, according to its filings. Qatar Investment Authority put in $100 million, while Abu Dhabi’s Mubadala invested another $100 million, the company said in the prospectus. Alibaba Group Holding Ltd. also contributed $215 million, boosting its investment in Xpeng.

The offering is being led by Credit Suisse Group AG, JPMorgan Chase & Co. and Bank of America Corp. Xpeng’s trading on the New York Stock Exchange on Thursday under the symbol XPEV.

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