Thursday 27 August 2020

EV Maker XPeng Climbs 41% in Debut After $1.5 Billion IPO - Bloomberg

EV Maker XPeng Climbs 41% in Debut After $1.5 Billion IPO - Bloomberg:

Chinese electric-car startup XPeng Inc. rose 41% in its trading debut after raising $1.5 billion in a U.S. initial public offering.

XPeng’s American depositary shares closed at $21.22 in New York trading Thursday after rising as much as 67% earlier in the day. The company, with a market value of about $15 billion, sold 99.7 million shares Wednesday for $15 each after expanding the size of its offering and pricing the shares above a marketed range.

Strong share price gains this year by Tesla Inc. and NIO Inc. have stoked investor demand in the electric vehicles sector and prompted similar companies to go public. Li Auto Inc., another Chinese EV startup, increased the size of its U.S. IPO in July to raise $1.26 billion including the so-called greenshoe shares. Li’s shares, which fell 17% Wednesday, are still up 69% from its offer price.

XPeng Vice Chairman Brian Gu said competition among electric vehicle makers is helping speed their adoption.

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