Chinese Tesla competitor Xpeng upsizes IPO, will now raise $1.5 billion amid strong demand

• The Chinese electric-car maker Xpeng plans to raise $1.5 billion in an initial public offering, it said on Thursday.
• The Tesla competitor said it would sell 99.7 million American depositary shares at $15 each.
• It increased the total it planned for largely because of strong investor demand for electric-automaker IPOs. Xpeng's initial guidance saw shares selling for $11 to $13 each.
• Other Chinese EV manufacturers including Nio and Li Auto have enjoyed strong rallies on US exchanges as investors bet heavily on the future of electric cars.
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The Chinese automaker Xpeng aims to raise $1.5 billion in an initial public offering on the New York Stock Exchange, the company said on Thursday.

The electric-car manufacturer said it would sell 99.7 million American depositary shares at an offering price of $15 each. The level is higher than its previous range of $11 to $13 per share because of strong demand for the offering. Each American depositary share is worth two shares of Xpeng's common stock.

The deal's underwriters — Credit Suisse, JPMorgan, and Bank of America — will hold a 30-day option to buy an additional 15 million shares, Xpeng said. The automaker will trade under the ticker XPEV. Xpeng's shares are expected to begin trading on Thursday, and the offering is set to close on Monday.

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Xpeng's IPO marks the latest Chinese Tesla rival to raise capital in the US. Nio made its market debut in September 2018 at a lower-than-expected offering price but has more than doubled as investors bet heavily on the electric-vehicle revolution. Li Auto followed with an IPO on July 30 that raised $1.1 billion.

The latest Chinese-automaker IPO follows the opening of Tesla's factory in Shanghai. The facility aims to boost the company's presence in the country and cater to its growing interest in electric vehicles. Tesla began delivering Model 3 sedans in China in December and has since started producing its Model Y crossover in the new factory.

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Chinese automakers have enjoyed a second wind after posting weak sales in 2019. Nio led the charge after receiving roughly $1 billion in funding from state-owned firms. Strong demand for electric-automaker IPOs suggests investors' interest in the sector has only swelled since.

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