• Chinese electric car maker Xpeng plans to raise $1.5 billion in an initial public offering set to begin trading on Thursday.
  • The Tesla competitor will sell 99.7 American Depositary Shares at $15 each, according to a Thursday press release.
  • The total is more than initially planned for, largely due to strong investor demand for electric-vehicle IPOs. Xpeng’s initial guidance saw shares selling for $11 to $13 each.
  • Other Chinese EV manufacturers including Nio and Li Auto have enjoyed strong rallies on US exchanges as investors bet heavily on the future of electric cars.
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Chinese automaker Xpeng aims to raise $1.5 billion in an upcoming initial public offering on the New York Stock Exchange, the company said in a Thursday press release.

The electric car manufacturer will sell 99.7 million American Depositary Shares at an offering price of $15 each. The level is higher than its previous range of $11 to $13 per share due to strong demand for the offering. Each ADS is worth two shares of Xpeng’s common stock.

The deal’s underwriters – Credit Suisse, JPMorgan, and Bank of America – will hold a 30-day option to buy an additional 15 million shares, Xpeng said. The automaker will trade under the ticker XPEV. Xpeng’s shares are expected to begin trading on Thursday, and the offering is set to close on August 31.

Read more: Chris Mayer wrote the book on how to make 100 times your money with a single stock. He gives an in-depth assessment of the latest company that ‘checks all my boxes.’

Xpeng's IPO marks the latest Chinese Tesla rival to raise capital in the US. Nio made its market debut in September 2018 at a lower-than-expected offering price, but has since more than doubled as investors bet heavily on the electric-vehicle revolution. Li Auto followed with a July 30 IPO that raised $1.1 billion.

The latest Chinese-automaker IPO follows the opening of Tesla's factory in Shanghai. The facility aims to boost the company's presence in the country and cater to its growing interest in electric vehicles. Tesla began delivering Model 3 sedans in China in December and has since started producing its Model Y crossover in the new factory.

Chinese automakers have enjoyed a second wind after posting weak sales in 2019. Nio led the charge after receiving roughly $1 billion in funding from state-owned firms. Strong demand for electric automaker IPOs suggests investors' interest in the sector has only swelled since.

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