Chinese electric car maker Xpeng to follow August NYSE debut by raising additional US$2.48 billion
- Company says it will price 48 million American depositary shares at US$45 each
- Placement will be the largest first-time follow-on ADS offering by a Chinese company in New York
Guangzhou-based new energy vehicle (NEV) maker Xpeng Motors said on Wednesday that it could raise up to US$2.48 billion in a follow-on share placement. It debuted on the New York Stock Exchange in August after netting US$1.5 billion in an initial public offering (IPO).
Xpeng could raise the US$2.48 billion if it exercises an option to sell an additional 7.2 million ADSs. The placement will be the largest first-time follow-on ADS offering by a Chinese company in New York, in any case.
“The Chinese Tesla challengers, after having raised additional funds, will be better placed to enhance their research and development capabilities, and to improve their marketing strategies, as they pursue a bigger market share,” said Yin Ran, a Shanghai-based angel and venture capital investor. “They are now viewed as rising stars on the stock market, with investors taking a bullish stance on their growth prospects.”
Xpeng’s placement followed an announcement by Li Auto, which last week said it would raise as much as US$1.6 billion by issuing 47 million ADSs on the New York Stock Exchange.