Chinese smart electric vehicle (EV) company Xpeng said it has raised about US$1.5 billion in its US initial public offering after selling over 99.7 million shares for US$15 apiece.
Xpeng P7 smart EV sports sedan / Photo credit: Xpeng Motors
The company’s stock began trading August 27 and ended the day at just above US$21 per share, representing a 40% increase. Xpeng originally planned to sell 85 million shares priced between US$11 and US$13.
The company had also granted underwriters a 30-day overallotment option to purchase up to an additional 14,959,999 shares to raise an extra US$224.4 million.
Based on the size of the deal, Xpeng is expected to be valued at around US$11.2 billion after its IPO, which has seen “higher-than-expected demand from investors” prior to trading, Fox News previously reported.
Headquartered in Guangzhou, Xpeng designs, manufactures, and markets smart EVs in China. It has developed its own full-stack autonomous driving
technology and in-car intelligent operating system, as well as core vehicle systems.
The company just last month raised around US$500 million in a series C+ round to further invest in product development, manufacturing, sales, and service network, among others. Hillhouse Capital, Sequoia Capital China, Aspex, and Coatue participated in the fundraise.
This comes after the April 2020 launch of Xpeng’s second smart EV model, the P7 sports sedan. The company also secured the production license for its self-built, fully owned factory in Zhaoqing, Guangdong, in June.
Update (August 28, 5:40 pm): This article was updated to include results from Xpeng’s first trading day.
Editing by Eileen C. Ang
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