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Alibaba-Backed Xpeng Seeks to Raise USD1.1 billion in New York IPO after Nio and Li Auto

Xpeng, a Chinese smart electric vehicle producer, seeks to raise USD1.1 billion from its initial public offering on the New York Stock Exchange with a ticker ‘XPEV’, being the 3rd Chinese carmaker to get listed in the world’s largest capital market after Nio and Li Auto. 

The Guangzhou-based firm is selling 85 million American depository shares (ADS) with a price between USD11 and USD13, according to the firm’s files submitted to the US Stock Exchange Commission yesterday. XPeng’s market capitalization is expected to be USD9.17 billion if the share price is fixed at USD13. 


BofA Securities, Credit Suisse Securities (USA) and J.P. Morgan Securities are acting as joint book-running managers of the offering and as representatives of the underwriters. 

Simplicity Holding Limited holds 26.4 percent of XPeng, the e-commerce giant Taobao China Holding holds 14.4 percent, IDG entity has 6.2 percent, while the executive team has 40.9 percent shares in which the founder and Chinaman He Xiaopeng holds 31.6 percent, and the CEO Xia Heng holds 4.9%. 

Alibaba Group, Coatue and Qatar Investment Authority intend to subscribe USD200 million, USD100 million and USD50 million of American Depository Shares. 

Founded in 2015, Xpeng has delivered 18,741 units of SUV G3 to customers since November 2018 through contract manufacturing collaboration with Haima, and 1,966 sedan P7 to customers since this May. It plans to launch the 3rd EV, a sedan next year. XPeng has built own plant in Zhaoqing, a city near Guangzhou. 


Over 90 percent G3 purchasers chose the version with self-driving function, and 50 percent of P7 customers ordered the one that supports XPILOT 3.0, according to the file. 

XPeng had revenues of CNY9.7 million and CNYB2,321.2 million (USD333.4 million) in 2018 and 2019, respectively. The net losses were CNY1.4 billion and CNY3.69 billion in 2018 and 2019 respectively. Revenue fell 19% in the first half of 2020 to 1 billion yuan, or $141.9 million.

Shares in New York-traded Nio, a Chinese vehicle maker that only produces electric cars, have tripled in value so far this year. It rose 2.5 percent as of closing last night. Li Auto’s  [NASDAQ: LI] shares rose 1.8% to 15.02  last night since its debut on July 30 after its USD1.1 billion IPO. 

The US electric vehicle makers Tesla [NASDAQ: TELA], which all Chinese NEV startups rival against, has been surging 145 percent this year, and was up 2.41 percent last night.

 

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