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Xpeng jump starts New York IPO, raising capital to expand in China and challenge Tesla in world’s largest electric vehicle market
- Xpeng makes US IPO filing public as it seeks to capitalise on rally in shares of electric carmakers
- Xpeng’s share sale follows in tracks of Chinese peer Li Auto’s debut on Nasdaq
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XPeng Inc applied to list its shares on the New York Stock Exchange, as it seeks capital to challenge Palo Alto-headquartered Tesla in China, the world’s largest market for electric vehicles.
The Chinese smart electric vehicle maker, which markets a four-door sports sedan and a sports utility vehicle under the Xpeng Motors brand, has filed confidentially for an IPO earlier this year and has now made its plan and financial statements public. The next step will be to start a marketing process to sell its American depositary shares, gather feedback from investors and analysts and establish a price range over the coming weeks.
Xpeng has chosen to list in New York even as US-China relations have deteriorated to the lowest point in decades, because the world’s largest capital market still has a far deeper pool of financial liquidity than China for start-ups, according to people familiar with the company’s thinking. As a US-listed entity, Xpeng would have to open its audited books to American regulators, or risk being expelled from US exchanges, under legislation passed in the US Senate.
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“If any such deliberations were to materialize, the resulting legislation may have a material and adverse impact on the stock performance of China-based issuers listed in the United States. It is unclear if this proposed legislation would be enacted,” said Xpeng in its filing lodged with the US Securities and Exchange Commission on Saturday Hong Kong time.
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China’s electric car start-ups are tanking up on capital to fuel their fight for market share in the world’s largest car market.
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