Tesla rival Xpeng prices global offering of 85 million shares at HK$165 a share to raise HK$14.025 billion

Dow Jones2021-06-30

MW Tesla rival Xpeng prices global offering of 85 million shares at HK$165 a share to raise HK$14.025 billion

Chinese electric-car maker Xpeng Inc. $(XPEV)$ priced its global offering of 85 million Class A shares on Wednesday at HK$165 ($21.25) per share for gross proceeds of about HK$14.025 billion. The offer is split between an international offering of 80.75 million shares and a Hong Kong offering of 4.25 million shares. The Tesla $(TSLA)$ rival is already listed on the New York Stock Exchange and has a market value of more than $30 billion. The pricing is equal to about $42.52 per ADS. There were eight banks underwriting the global offering, led by JP Morgan and BofA Securities. Proceeds will be used to invest in the company's proprietary software, including its Xpilot and Xmart operating systems, to develop new models and upgrade its hardware, for other technology investments, marketing and to expand its network of stores and charging stations. China is a key market for electric vehicles, and new entrants such as Xpeng and NIO $(NIO)$ have emerged in recent years as rivals to Elon Musk's Tesla. U.S.-listed shares were down 1.6% premarket but have gained about 3.5% in the year to date, while the S&P 500 has gained 14%.

-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com

$(END)$ Dow Jones Newswires

June 30, 2021 08:27 ET (12:27 GMT)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Sephy
2021-06-30
Sephy
It will be NIO’s turn soon now that it’s price is SUPER overvalued, then that will be the HUGE dip I kept on warning people about.
JHx
2021-06-30
JHx
Yeah
Theship
2021-06-30
Theship
will up n up again?
Ianer
2021-06-30
Ianer
Pretty clear they need cash to burn. The ability to scale is a cold hard reality for all automaker when jumping into producing EV at MASS volume.
- Ianer:
  yes. all auto makers (new & old) will have to go through that. low volume versus high volune mfging is a totally different game
- waihustle:
  Do you mean they have enter the production hell stage?