Electric Vehicle Maker Xpeng Raises US IPO Target To $1.5 Billion

Chinese electric vehicle maker Xpeng Inc. has signficantly increased the target for its United States initial public offering, Reuters reported Wednesday.

What Happened: The Chinese vehicle maker originally planned to issue 85 million American Depository Shares at a price range between $11 to $13 per share targeting a $1.1 billion proceeds.

Based on the Reuters report, the company could now issue 99.7 million shares at a price of $15 to raise $1.5 billion. The underwriters for the IPO will have an option to exercise an over-allotment option to purchase additional shares worth $224 million.

Why It Matters: To date, Xpeng has raised close to $2.6 billion from multiple prominent investors through private placements.

Chinese e-commerce giant Alibaba Group Holdings BABA is one of the investors in the EV startup.

Xpeng rival Li Auto Inc LI generated $1.1 billion through its IPO last month. Another Chinese carmaker and competitor, Nio Inc. NIO raised $1 billion IPO proceeds in September 2018.

Elon Musk-led rival EV maker Tesla Inc. TSLA has accused Xpeng of stealing its Autopilot source code through a former employee, as reported by Electrek.

Photo courtesy: Jengtingchen via Wikimedia