XPeng Inc. has upsized its IPO ahead of its debut Thursday to $1.5 billion, exceeding the recent public fundraising by Li Auto (Nasdaq: LI).
Strong investor demand has pumped the price and size of the public offering for the Alibaba-backed Chinese EV maker. XPeng will sell 99.7 million American depositary shares at $15 per share.
Earlier, the company filed to sell 85 million ADSs at the price range of $11 to $13 per share.
Underwriters on the deal are Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, and BofA Securities Inc. Co-managers are ABCI Securities Co., BOCI Asia, Futu Inc (Nasdaq: FUTU), Haitong International Securities Co., and Tiger Brokers (NZ).
In its prospectus, XPeng said four of its existing shareholders, Alibaba (NYSE: BABA; HKEX: 9988), Coatue, Qatar Investment Authority and Xiaomi (OTC: XIACF; HKEX: 1810), have expressed interest in acquiring a cumulative $400 million of the ADSs offered.
A new potential investor, Primecap Management Co., a fund that has backed Tesla (Nasdaq: TSLA) way before its shares exceeded the $1,000-mark, may acquire an additional $100 million of the shares in XPEV, the filing said.
Based in Guangzhou, China's auto manufacturing hub, XPeng sells two smart electric vehicles, the G3 and P7. The latter, a sports sedan P7, can run 439 miles on a single charge. As to the G3, an SUV, according to research by the IHS Markit, the company said in its filing that the G3 was among the top-three best-selling electric SUVs in China in 2019.
XPeng's target consumer is China's mid- to high-end segment, with prices on their vehicles ranging from 150,000 yuan to 300,000 yuan.
Next year, XPeng plans to release its third smart electric car, a sedan, as well as the next version of XPILOT – the 3.0.
For the first half-year, XPeng reported $141.9 million in revenues, down 19% from the same period in 2019. Net loss narrowed 59% year-over-year to $112.6 million. In the full year 2019, XPeng generated revenues of $328.5 million on losses of $522.5 million, according to the filing.
XPeng said it delivered 2,451 smart EVs in July, or 1,641 P7s and 810 G3s.
XPeng's IPO closely follows a highly successful listing of Li Auto, which sells the Li ONE six-seater smart electric SUV. The company raised $1.1 billion in IPO on July 30, priced at $11.50 per American depositary share, and soared nearly 40% upon debut.
On Wednesday, LI shares soared 28% to close at $23.38 per ADS.
Another listed Chinese EV maker, Nio Inc. (NYSE: NIO), also saw its shares jump to new heights - the company hit a 52-week peak of $20.97 per ADS on Wednesday and ended nearly 15% higher. A year ago, this stock traded at under $3 per share but has enjoyed a significant uptrend after the Covid-19 outbreak subsided in China and drove up deliveries and service upgrades.