Tesla Challenger Xpeng Launching Hong Kong Public Offering Following its U.S. IPO in 2020
【Summary】China’s rising electric vehicle startup XPeng Inc. today announced the launch of its Hong Kong public offering as part of a global offering of 85,000,000 new Class A ordinary shares. The shares will be included on the Main Board of the Stock Exchange of Hong Kong Limited. The company’s American depositary shares (ADSs), each representing two Class A ordinary shares of the company, will continue to be listed and traded on the NYSE under the stock symbol “XPEV”.
China's rising electric vehicle startup XPeng Inc. today announced the launch of its Hong Kong public offering as part of a global offering of 85,000,000 new Class A ordinary shares. The shares will be included on the main board of the Stock Exchange of Hong Kong Limited under the stock code "9868".
The proposed listing is a dual-primary listing of the Class A ordinary shares of Xpeng on the Hong Kong Stock Exchange. The company's American depositary shares (ADSs), each representing two Class A ordinary shares of the company, will continue to be listed and traded on the NYSE under the stock symbol "XPEV".
JPMorgan Chase & Co. and Bank of America Corp. are joint sponsors for Xpeng's Hong Kong offering. Final pricing is slated for June 30, with trading in Hong Kong scheduled to begin on July 7.
In Aug 2020, Xpeng went public in New York in a $1.72 billion IPO.
Xpeng Inc. is looking to raise as much as $1.97 billion in a second listing in Hong Kong, according to Bloomberg News, putting it on track to be the first Chinese EV producer to complete a so-called "homecoming share sale".
Xpeng is selling 85 million shares in the offering and set a maximum price of HK$180 for the portion reserved for Hong Kong investors, according to a filing with the U.S. Securities and Exchange Commission (SEC). The price represents a premium of roughly 11%, based on Wednesday's closing price of $40.95 of Xpeng's American depositary receipts. One ADR is equivalent to two ordinary shares.
Investors in the global offering will only be able to purchase Class A ordinary shares and will not be able to take delivery of ADSs. Upon the proposed listing, the Class A ordinary shares listed on the Hong Kong Stock Exchange will be convertible with the ADSs listed on the NYSE.
Xpeng is one of Tesla's biggest competitors in China, along with NIO and Li Auto. NIO and LiAuto are also planning sales in Hong Kong, Bloomberg News reported.
Xpeng plans to use the net proceeds from the global offering for expansion of its product portfolio and development of more advanced electric vehicle technologies. The funds will also be used to expand production capacity and upgrade the automaker's manufacturing facilities.
Xpeng is targeting tech savvy buyers in China with its advanced and connected fully-electric vehicles. The company's flagship P7 sedan, for example, costs around half the price of a Tesla Model S in China. The P7 starts at RMB 229,900 (US$35,522) and offers a high level of advanced technology, including autonomous driving, self-parking capabilities and an AI-powered vehicle OS.
Xpeng's autonomous driving feature is called Navigation Guided Pilot (NGP), which is similar to Tesla's Autopilot and its Full Self-Driving (FSD) feature. It was developed entirely in house by Xpeng. Approximately 50% of the company's employees work in R&D, which also includes development of Xpeng's AI-powered smart vehicle OS.
The P7 is outfitted with 14 cameras, 5 millimeter-wave radars, 12 ultrasonic sensors, lidar, centimeter-level high-definition GPS positioning and decimeter-level high-definition mapping for autonomous driving. In total, the P7 uses 31 sensors for autonomous driving functions.
In April at the annual Auto Shanghai car show Xpeng unveiled its third electric vehicle named the P5. The P5 is the world's first production smart EV equipped with automotive-grade LiDAR technology for autonomous driving. Xpeng said the new P5 is being positioned as a more family-friendly model under its flagship P7 sedan.
Xpeng's first vehicle was the G3 compact SUV, which launched in Dec 2018.
Earlier this month, Xpeng announced its vehicle delivery results for May 2021, which included sales of 5,686 electric vehicles. The total represents a 483% increase in year-over-year sales for the month of May. XPeng's May 2021 sales numbers were also 10% higher than in April.
Xpeng's year-to-date deliveries for 2021 reached 24,173 units as of May 31, representing a year-over-year increase of 427%.
XPeng is headquartered in Guangzhou, China, with offices in Beijing, Shanghai, Silicon Valley and San Diego, CA. The Company's Smart EVs are manufactured at plants in Zhaoqing and Zhengzhou, located in Guangdong and Henan provinces.
Xpeng has decided to adopt a fully electronic application process for the Hong Kong Public Offering, with no printed copies of the prospectuses or application forms. The electric automaker said it will help to mitigate the environmental impact of printing and minimize the use of natural resources.
GM is Suspending Bolt EV Production Until at Least Oct 15 Following Latest Recall Over Battery Fires
Electric Truck Startup Rivian Plans to Raise up to $8 Billion in its Upcoming IPO
Volkswagen’s ID.4 Pro SUV Awarded an EPA Estimated Range of 249 Miles, Edging Out the Ford Mustang Mach-E
Tesla Challenger XPeng to Officially Launch the P5 Sedan, its 3rd Electric Model, on Sept 15
Toyota Cuts its Annual Production Target by 300,000 Vehicles Due to Semiconductor Shortages
UPS Acquires Technology Platform Roadie to Facilitate Same Day Gig Deliveries
General Motors Extends Production Shutdown of the Chevy Bolt EV Until Sept 24 Due to Battery Recall
Tesla Sells 44,464 China-made Vehicles in August, Local Deliveries Surge 49.5% Compared to July
- Solar-Electric Car Startup Sono Motors to Use a Connected Vehicle Software Platform From Silicon Valley-based Sibros
- Aviva Technology Raises $26.5 Million in Series A Funding for its High Bandwidth, Ethernet-based Automotive Networking Solutions
- Automotive Supplier Continental AG to Integrate AEye’s Long-Range Lidar in a Full-Stack Autonomous Driving Solution
- U.S. Regulators Formally Open Safety Probe of Tesla’s Autopilot After Accidents Involving Emergency Vehicles
- Tesla Delays Cybertruck, Semi to Focus on Model Y Production
- EV Startup Fisker Inc. Announces a $600 Million Green Convertible Senior Notes Offering
- Volkswagen Shares its Bold ‘NEW AUTO’ Strategy, Which Includes Building Millions of Software-Based EVs
- General Motors Files Lawsuit Against Rival Ford for Naming its New Autonomous Driving Feature ‘BlueCruise’
- BMW iVentures Invests in Silicon Valley-based Self-Driving Truck Startup Kodiak Robotics
- Autonomous Trucking Startup Inceptio Technologies Raises $270 Million in Latest Series B Round