Xpeng, which manufactures smart electric SUVs and sedans in China, announced terms for its IPO on Friday.
The Guangzhou, China-based company plans to raise $1.0 billion by offering 85 million ADSs at a price range of $11 to $13. Insiders intend to purchase $400 million worth of ADSs in the offering, and a new investor intends to purchase $100 million worth of the ADSs. At the midpoint of the proposed range, Xpeng would command a fully diluted market value of $8.8 billion.
Xpeng targets the mid- to high-end segment in China’s passenger vehicle market, with prices ranging from $21,000 to $43,000, and currently offers two electric vehicles, the G3 SUV and the P7 sports sedan. According to the IHS Markit Report, the G3 was among the top-three best-selling electric SUVs in China in 2019.
Xpeng was founded in 2015 and booked $302 million in sales for the 12 months ended June 30, 2020. It plans to list on the NYSE under the symbol XPEV. Credit Suisse, J.P. Morgan and BofA Securities are the joint bookrunners on the deal. It is expected to price during the week of August 24, 2020.
