The Alibaba and Foxconn-backed Chinese Elecetric motor manufacturer Xpeng Motors debuted on the New York stock Exchange on August 27, 2020 under the ticker XPEV.
Xpeng Motors being the latest being the latest Chinese company to list on a US stock exchange was able to amass US$1.5 billion from its IPO highly exceeding the company’s initial expected target of US$1.11 billion.
Xpeng performed relatively better than Chinese hybrid EV maker Li Auto, which raised $1.1 billion in its Nasdaq IPO earlier this month.
Xpeng’s Initial Public Offering (IPO) received heavy interest from investors, causing Xpeng to sell 99.73 million American Depository Shares (ADS) at an offer price of $15, much more than the previously planned sale of 85 million ADS with initial price between $11 and $13, according to a press statement released yesterday.
According to the statement Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, and BofA Securities, Inc. acted as jointly as underwriters for the IPO.
The press statement also noted that the public offering includes a greenshoe option, whereby the underwriters are eligible to purchase an additional 14.95 million ADS in the next 30 days, which could raise another $224.4 million for Xpeng.