China’s EV maker Xpeng raises U.S. IPO pricing

FILE PHOTO: XPeng's electric vehicle (EV) P7 is unveiled during the media day for the Shanghai auto show
FILE PHOTO: XPeng's electric vehicle (EV) P7 is unveiled during the media day for the Shanghai auto show, China, April 16, 2019. REUTERS/Aly Song

August 26, 2020

By Scott Murdoch

HONG KONG (Reuters) – Chinese electric vehicle maker Xpeng could raise as much as $1.275 billion from its U.S. initial public offering (IPO) after flagging that its shares would be priced at $15, two sources with direct knowledge of the matter said.

The price will be formally set on Wednesday in the United States but the indicative $15 is higher than the guidance of $11 to $13 the company gave when the transaction launched last week.

Xpeng declined to comment on the pricing of its deal.

The Alibaba-backed Xpeng will sell 85 million American Depository Shares (ADS), and at $13 would have raised $1.1 billion.

However, the target price was increased after strong demand from investors, the two sources said, which took the raising to $1.275 billion.

The sources could not be named because the information has not yet been made public.

Founded in 2014, Guangzhou-based Xpeng sells G3 sport-utility vehicles and P7 sedans with intelligent functions. Led by chief executive He Xiaopeng, it makes cars in two factories in China.

Chinese companies remain keen to list in the U.S. despite tension in ties between the two countries.

Property management group Beike raised $2.12 billion in an IPO this month and Li Auto secured $1.1 billion when it hit the public markets in late July.

(Reporting by Scott Murdoch in Hong Kong; Editing by Clarence Fernandez)