Xpeng seeks to raise up to US$1.1 billion in New York IPO as electric car maker prepares to challenge Tesla in China
- Xpeng’s share sale follows in the tracks of Chinese peer Li Auto’s debut on Nasdaq last month after its US$1.1 billion IPO
- Xpeng has pre-sold 49 per cent of the ADSs on offer
Xpeng is seeking to raise up to US$1.1 billion from its initial public offering on the New York Stock Exchange, as it gears up to challenge Tesla in China, the world’s largest market for electric vehicles.
Four of Xpeng’s existing shareholders – Alibaba Group Holding, Coatue, Qatar Investment Authority and Xiaomi – have indicated an interest in purchasing up to US$200 million, US$100 million, US$50 million and US$50 million, respectively, of the share sale. Primecap Management Company has also put its hand up for US$100 million worth of the ADS. Alibaba owns the South China Morning Post.
The expression of interest from these investors amounts to as much as 49 per cent of the proceeds based on the mid-point of the price range.
The next step will be to accelerate the marketing process and narrow the range over the coming days. Pricing is due on August 26, according to a terms sheet seen by the Post.