Chinese electric-vehicle maker XPeng Inc. has raised $2.16 billion from an upsized share sale, joining a rush of fundraising by firms in the sector seeking to capitalize on a rally in stock prices.
The Guangzhou-based firm sold 48 million American depositary shares at $45 apiece, according to a statement. That’s 8 million more ADS than the company had been marketing and the price represents a 7.6 percent discount to its close of $48.69 on Tuesday. The EV maker could raise as much as $2.48 billion if it exercises an over-allotment option to sell an additional 7.2 million shares.
XPeng went public just over three months ago, raising $1.72 billion in an initial public offering that priced above the range and was also increased in size. EV makers have staged huge rallies this year, with industry leader Tesla Inc. surging some 677 percent.
XPeng’s shares have jumped 224 percent since its IPO, and its follow-on offering comes just a week after its newly-listed rival Li Auto Inc. raised $1.36 billion in a share sale.
Chinese firms are raising record amounts of capital on U.S. exchanges this year even as relations between the world’s two largest economies are at a low ebb.
XPeng’s follow-on offering is the second-biggest straight after an IPO by a U.S.-listed Chinese firm, according to data compiled by Bloomberg. Online rental platform KE Holdings Inc. currently holds the title of largest first-time follow-on after it sold $2.36 billion of stock just three months after its debut.
XPeng plans to use the proceeds for purposes including research and development of its smart EVs and software, hardware and data technologies, expansion of sales channels and super charging network, as well as expansion of its footprint internationally and potential investments in core technologies of smart EV.
