Chinese EV maker XPeng eyes to $1.11-B in US IPO

Chinese electric vehicle manufacturer XPeng Inc intends to sell 85 million American depositary shares (ADS) to raise up to $1.11 billion in its initial public offering (IPO) in New York.

Each ADS represents two Class A ordinary shares, priced between $11 and $13.

According to XPeng, existing investors Alibaba Group, Coatue, and Qatar Investment Authority had expressed interest in buying the ADSs of up to $200 million, $100 million and $50 million, respectively.

Xiaomi Corp also indicated an interest in purchasing up to $50 million of the ADSs.

US-listed Chinese companies are under tightened scrutiny and facing strict audit requirements from US regulators.

Alibaba is set to acquire all of XPeng’s class C ordinary shares, representing 14.9 percent of the voting power of all shares.

Another Chinese electric vehicle startup, Li Auto Inc LI.O, was able to raise $1.09 billion in its Nasdaq IPO last month.

The valuation of Guangzhou-based XPeng stood at $9.17 billion.

Founded in 2014, XPeng manufactures cars in two factories in China.