initial public offerings (IPOs) trading on American exchanges

Friday, August 28, 2020

Xpeng Motors (XPEV) began trading on the NYSE on Wed 26 Aug 20

Xpeng Motors stock shot up 42% to 21.30 in Thursday's debut under the ticker XPEV. Shares hit 25 intraday.
  • Xpeng is the third Chinese electric vehicle startup to go public in New York after Nio's (NIO) $1 billion IPO two years ago and Li Auto's (LI) recent $1.1 billion IPO.
  • Electric car stocks have benefited both from Tesla's surge this year and as governments and automakers promote emissionless technology.
Earlier, the Guangzhou-based company sold 99.7 million American depositary shares at 15 a share, raising nearly $1.5 billion. Xpeng originally planned to sell 85 million shares at $11-$13 each.

An IPO filing describes the company as producing two premium electric vehicles, the G3 SUV and the four-door P7 sports sedan. P7, which launched at the end of June, is a rival to the Tesla Model 3 in China. A third model is expected in 2021.

Xpeng also offers an optional autonomous driving system. It targets the mid- to high-end China electric car market, as do Chinese rivals Li Auto and Nio.

Founded in 2015, Xpeng is unprofitable and revenue dived 19% in the first half of 2020 as the coronavirus pandemic hit sales.

No comments:

Post a Comment