[GUANGZHOU] Chinese electric-car startup Xpeng Motors has filed for a US initial public offering (IPO), right behind rival Li Auto which raised US$1.1 billion last month.
Filing with the US Securities and Exchange Commission on Friday as XPeng Inc, the company listed the size of the offering as US$100 million, a placeholder that will likely change.
Electric vehicle (EV) makers have been enjoying a surge in investor interest after strong share price gains this year in Tesla and NIO. Li Auto, which increased the size of its IPO, has since climbed 61 per cent, more than tripling its valuation prior to the listing.
Guangzhou-based XPeng recently closed its latest funding round for a total of US$900 million, according to its filing. The Qatar Investment Authority put in US$100 million while Abu Dhabi's Mubadala invested another US$100 million, the company said in the prospectus. Alibaba Group also contributed US$215 million, boosting its investment in Xpeng.
China is the world's largest EV market, but also highly competitive. As public subsidies have been withdrawn, demand has fallen. A Tesla offensive to make cars locally has heaped more pressure on local players.
After years of developing cars and trying to boost their profiles globally, Chinese EV makers are now taking steps to go public as the virus pandemic and economic slowdown squeeze the market, boosting competition. Hozon New Energy Automobile said it would list in Shanghai as soon as next year while WM Motor Technology is also weighing an initial stock sale in China as soon as this year, people familiar with the matter have said.
XPeng delivered 5,185 units of its first vehicle, the G3 SUV, in the first half of 2020. It started deliveries of its second model, the P7 sedan, in May, shipping 1,966 units by July 31, according to its filing.
The offering is being led by Credit Suisse Group, JPMorgan Chase & Co and Bank of America. The company is planning for its shares to trade on the New York Stock Exchange under the symbol XPEV.