China's Xpeng Motors Increases the Size of its U.S. IPO to $1.5 Billion Due to Strong Demand From Investors
【Summary】Chinese electric vehicle startup Xpeng Motors has increased the size of its U.S initial public offering (IPO) to about $1.49 billion, two sources with direct knowledge of the matter told Reuters.

Chinese electric vehicle startup Xpeng Motors has increased the size of its U.S initial public offering (IPO) to about $1.49 billion, two sources with direct knowledge of the matter told Reuters.
The company originally planned to sell 85 million American Depositary Shares (ADS) but increased that to about 99.7 million shares after higher-than-expected demand from investors, the sources told Reuters on condition of anonymity as the information is not yet public.
The automaker will price its shares at $15 each, up from the $11 to $13 dollar range.
The company is planning to list its shares on the New York Stock Exchange (NYSE). By listing its shares on the NYSE, Xpeng is hoping to cash in on the current investor trend of pouring money in new electric vehicle startups.
Xpeng had initially planned to raise $1.11 billion.
Based on the new size of the deal, Xpeng would be valued at roughly $11.2 billion following its IPO. Its shares will start trading in New York on Thursday.
According to Reuters, there is also a so-called greenshoe option in which another 14.96 million shares can be issued within the next 30 days that would allow Xpeng to raise a further $224.4 million.
Xpeng will become the latest Chinese electric vehicle maker to launch an IPO in the U.S. to raise new capital to challenge Tesla in their home market, following its rival NIO.
Shares of rival Tesla have reached record highs over the past three months, making the California electric vehicle pioneer the world's most valuable automaker as its stock topped $2,000 a share.
Xpeng is viewed as a popular alternative to Tesla in China. Xpeng's second electric model is the P7 smart sedan. The P7 went on sale in April. The P7 comes loaded with advanced technology, including self-parking. It's billed as a lower priced alternative to the Tesla Model S in China.
The P7 costs less than half the price of a Model S. Xpeng says it's offering the same level of technology, connectivity features and performance in the P7 for around $50,000 less than Tesla's flagship sedan.
Xpeng's P7 achieves an NEDC Range of 439 Miles, the longest of all EVs sold in China. The car features an all-wheel-drive setup with dual electric motors.
Xpeng Motors, founded in 2014, has raised significant new funding since late last year leading up to its debut on Wall Street. Chinese e-commerce giant Alibaba is among its backers.
The EV startup secured $400 million in Series C capital funding in Nov. 2019. In early July, Xpeng secured an additional $500 million in new funding, then followed that up a few weeks later with an additional $300 million round, equaling $1.2 billion raised in less than a year.
An pending Xpeng Motors U.S. listing comes two years after rival electric automaker NIO raised over $1 billion in its IPO on Sept, 12, 2018. NIO is one of Xpeng's biggest competitors in China. Shares of NIO have risen sevenfold this year.
resource from: Reuters
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