XPeng Inc. (XPeng or the Company), a leading Chinese electric vehicle (EV) startup, announced on Dec. 7 that it plans to offer and sell 40 million American Depositary Shares (ADSs) to the public, which represent 80 million Class A ordinary shares.
In addition, the Company has granted the underwriters a 30-day option to purchase up to a total of 6 million additional ADSs.
XPeng said in a filing with the Securities and Exchange Commission that each Class A ordinary shares is priced up to $25.33, which is calculated as a maximum price per ADS of $50.66. The automaker estimates that it will receive net proceeds of roughly $1.942 billion from this public offering, or around $2.234 billion if the underwriters exercise in full the option to purchase additional ADSs based on last Friday's closing price of $49.34 per XPeng stock.
The net proceeds from the proposed offering is set to be used in the R&D of XPeng's smart EVs and software, hardware and date technologies, the sales and marketing businesses, the expansion of sales and service channels and supercharging network, the expansion of XPeng’s footprints in global markets, the potential strategic investments in core technologies related to smart EVs, as well as general purposes like working capital needs.
The startup said it delivered a total of 4,224 new vehicles in Nov. 2020, representing a 342% year-on-year increase. As of November 30, XPeng’s year-to-date deliveries reached 21,341 units, surging 87% increase from a year ago.
The fast-growing startup is making greater effort to roll out new products, develop new technologies, expand sales channels and charging network, and improve operational services. For instance, as of Nov., the Company had launched free charging service in 64 cities of China. All of these projects require a whopping capital supports.
