Xpeng to increase U.S. IPO size to $1.5 billion

On Thursday, Chinese electric vehicle (E.V.) maker Xpeng announced that it would increase the size of its U.S Initial Public Offering (IPO) to about $1.5 billion. It would become the third Chinese electric vehicle startup to go public in New York City after Nio’s $1 billion IPO in 2018 and Li Auto’s $1.1 billion IPO.

According to its filing, Xpeng would price its shares at $15 each after initially indicating that it would be sold for $11 to $13 after the deal was launched on Friday.

Xpeng Motors stock would start trading under the ticker XPEV.

The car manufacturing company said that Chinese e-commerce titan Alibaba and Xiaomi Corp. were among its backers.

The Guangzhou-based automaker stated that it plans to sell 85 Million American Depositary Shares (ADS) but it eventually increased to 99.7 Million shares.

“Enactment of any of such legislation or other efforts to increase the U.S. regulatory access to audit information could cause investor uncertainty for affected issuers, including us, and the market price of the [U.S. shares] could be adversely affected,” Xpeng said on its Thursday filing.