Xpeng Expands Share Sale To Rise $2.16 Billion

Author: |

The Chinese electric vehicle manufacturer, Xpeng, has decided to raise the fund. It has raised almost $2.16 dollars from a big share sale. According to the company which is a rival to Tesla, has sold 48 million American depositary share, $45 for each ADS.

The price represented a %7.6 discount on its closing price of $48.69. If Xpeng decides to sell an additional 7.2 million shares, it would raise as much as $2.48 billion.

After one of Xpeng’s rivals, Li Auto (not Tesla!) raised $1.36 billion, the Chinese carmaker decided to join the crazy fund rising rush. According to Bloomberg, the company’s offering is the second biggest straight after an IPO US-listed Chinese company. The title of first follow-on belongs to KE Holdings Inc Beike), which is an online rental platform. After its New York debut, the company sold $2.36 billion of its stock.

After netting $1.72 billion in its IPO, the Chinese car manufacturer debuted on the New York Exchange a few months ago. According to Xpeng itself, the financial result of the third quarter of the year, shows a 265.8% year-on-year increase in deliveries and a 342.5% year-on-year growth in sales. Apparently, the number of its year-to-year deliveries hit 21.341 units by November 30.


Xpeng has decided to use the proposed offering in the research and development of smart cars, software, hardware and data technologies. It will use it to expand its sales and service EV charging channels. Thanks to the company, now 64 cities across China have free charging services.

The company is planning to expand its growth in the global sales and marketing. Last month, the first group of Xpeng vehicles was delivered to Norway.

What do you think?