XPeng Inc, the Chinese electric vehicle maker, bared that it hopes to secure around $1.1 billion in its debut listing in New York, aiming to take advantage of the eagerness for battery-powered rides even as China-U.S. ties remain sour.
In a regular filing with the U.S. Securities and Exchange Commission on Friday, XPeng disclosed that it proposed to unload 85 million American depositary shares (ADS) for $11-$13 apiece. The Chinese EV group would be worth roughly $9.17 billion atop that range based on shares it registered with the SEC.
The Guangzhou-based firm disclosed in a recent filing that it would dispose of nearly 430 million Class-B shares but did not specify the number of Class-A shares it would unload. Based on that filing, XPeng added it looked to secure a $100 million placeholder and will have the symbol "XPEV" once it gets the green light to trade.
Electric vehicle startups Lordstown Motors, Nikola Motor, and China's New Energy Vehicle startups NIO Inc and Li Auto are some of the latest companies that went public. XPeng's U.S. IPO slightly surpasses rival Li Auto's debut in July this year. Credit Suisse, Bank of America Securities, and JP Morgan are among XPeng's underwriters for its New York listing.
XPeng's foray into Wall Street comes at a time when American-listed groups from China are facing careful examination and rigid accounting requirements from U.S. regulatory bodies, as frictions between the two economic powerhouses deepen.
EV companies have been pleased by an increase in investor confidence following robust stock price rallies lately by Tesla and NIO. Li Auto, which ramped up the volume of its U.S. bid, has since soared more than 30 percent from its initial offer price. Stocks by electric car makers have also gained as regulators and auto companies promote clean technology.
Meanwhile, XPeng said existing backers Alibaba Group, Coatue, and the Qatari Investment Authority had expressed willingness in acquiring $200 million, $100 million, and $50 million respectively, of the American Depositary Shares being offered. Xiaomi Corp, also an XPeng investor, is also interested in procuring around $50 million of the ADS.
China is the biggest electric vehicle market in the world. As state subsidies have been canceled, demand for EVs has declined. An aggressive production campaign by Tesla to locally build EVs has put more pressure on domestic firms.
In 2018, XPeng rolled out its first G3 vehicle to clients and just this April, the company introduced a second version of the vehicle. Established in 2014, XPeng builds battery-powered cars in two manufacturing facilities in China.
