The Classy Investors

  /  Stock   /  Chinese EV maker Xpeng files for U.S. listing after rival surges

Chinese EV maker Xpeng files for U.S. listing after rival surges

imageStock MarketsAug 08, 2020 03:10AM ET

(C) Reuters. People look at XPeng’s P7 sedan model displayed at the Guangzhou auto show in Guangzhou

BEIJING (Reuters) – Chinese electric vehicle (EV) maker Xpeng Inc, backed by Alibaba (N:BABA) and Xiaomi (OTC:XIACF) Corp (HK:1810), has filed to list its shares in New York, seeking to ride enthusiasm for EVs even as U.S.-China relations are strained.

The move, announced on Friday, comes as share prices of EV makers including Tesla Inc (O:TSLA) and Nio Inc (N:NIO) have surged in recent months.

Shares in Xpeng rival Li Auto Inc (O:LI) soared more than 50% following its debut on Nasdaq on July 30, after the Chinese automaker sold shares to investors in its $1.1 billion IPO.

The exuberance contrasts with relations between Washington and Beijing, which are at their worst in decades over accusations of spying, a trade war, the coronavirus and Hong Kong.

Before six-year-old Xpeng sought permission to list on the New York Stock Exchange, it raised $900 million from investors in its latest funding round. This followed $400 million in fund-raising in November. The latest investors include Alibaba, Qatar Investment Authority and Abu Dhabi’s sovereign wealth fund Mubadala.

Guangzhou-based Xpeng, led by chief executive He Xiaopeng, has sold over 20,000 electric vehicles, including new P7 sedans and G3. It builds cars in two factories in China.

Funds from the IPO will go towards research and development in areas such as intelligent vehicle technologies and sales expansion, the company said in a filing to U.S. Securities and Exchange Commission.

Xpeng intends to list its shares under the symbol “XPEV”.

Bank of America (NYSE:BAC), J.P. Morgan, and Credit Suisse (SIX:CSGN) are the underwriters for the listing.

Chinese EV maker Xpeng files for U.S. listing after rival surges

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.