Chinese EV maker XPeng looks to raise up to $1.11 bln in U.S. IPO (updated)
21/08/2020 17:27
(Adds details on IPO and investors, background)
By Noor Zainab Hussain
Aug 21 (Reuters) - Chinese electric vehicle (EV)
manufacturer XPeng Inc said it hopes to raise up to $1.11
billion in its initial public offering (IPO) in New York,
seeking to ride the enthusiasm for EVs even as U.S.-China
relations remain strained.
The company said on Friday it intends to sell 85 million
shares American depositary share (ADS), each representing two
class A ordinary share, priced between $11 and $13 per share.
At the top end of the range, XPeng's valuation stood at
$9.17 billion. (https://bit.ly/3hifxb5)
The IPO comes at a time when U.S.-listed Chinese companies
are facing tightened scrutiny and strict audit requirements from
U.S. regulators, as tensions escalate between two of the world's
biggest economies.
The Chinese EV maker said existing investors Alibaba Group
BABA.N , Coatue, and Qatar Investment Authority had indicated
interest in buying up to $200 million, $100 million and $50
million, respectively, of the ADSs being offered.
Backer Xiaomi Corp 1810.HK had also indicated interest in
buying up to $50 million of the ADSs.
Alibaba will own all of XPeng's class C ordinary shares,
representing 14.9% of the voting power of its total shares
immediately after the completion of the offering, XPeng said.
XPeng's IPO comes after rival Li Auto Inc LI.O , another
Chinese electric vehicle startup, raised $1.09 billion in its
IPO on Nasdaq last month. urn:newsml:reuters.com:*:nL2N2F02ZT
Share prices of EV makers including Tesla Inc TSLA.O and
Nio Inc NIO.N have surged in recent months.
"Investors can't seem to get enough exposure to electric
vehicle stocks. We are comparing Xpeng with Li Auto, which went
public in July and is up 28% from its IPO and to Nio," Kathleen
Smith, Principal, Renaissance Capital, provider of institutional
research and IPO ETFs, said.
Founded in 2014, Guangzhou-based XPeng delivered its first
Xpeng G3 vehicle to customers in December 2018 and launched a
second model in April this year. The company manufactures cars
in two factories in China. urn:newsml:reuters.com:*:nL4N2FA05R
BofA Securities, JP Morgan and Credit Suisse are among the
underwriters for the IPO.
(Reporting by Noor Zainab Hussain and Niket Nishant in
Bengaluru, Editing by Sherry Jacob-Phillips)
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