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China's EV maker Xpeng raises U.S. IPO pricing -sources

Credit: REUTERS/Sun Yilei

Chinese electric vehicle maker Xpeng could raise as much as $1.275 billion from its U.S. initial public offering (IPO) after flagging that its shares would be priced at $15, two sources with direct knowledge of the matter said.

By Scott Murdoch

HONG KONG, Aug 26 (Reuters) - Chinese electric vehicle maker Xpeng XPEV.N could raise as much as $1.275 billion from its U.S. initial public offering (IPO) after flagging that its shares would be priced at $15, two sources with direct knowledge of the matter said.

The price will be formally set on Wednesday in the United States but the indicative $15 is higher than the guidance of $11 to $13 the company gave when the transaction launched last week.

Xpeng declined to comment on the pricing of its deal.

The Alibaba-backed BABA.N Xpeng will sell 85 million American Depository Shares (ADS), and at $13 would have raised $1.1 billion.

However, the target price was increased after strong demand from investors, the two sources said, which took the raising to $1.275 billion.

The sources could not be named because the information has not yet been made public.

Founded in 2014, Guangzhou-based Xpeng sells G3 sport-utility vehicles and P7 sedans with intelligent functions. Led by chief executive He Xiaopeng, it makes cars in two factories in China. {nL4N2FN30R]

Chinese companies remain keen to list in the U.S. despite tension in ties between the two countries.

Property management group Beike BEKE.N raised $2.12 billion in an IPO this month and Li Auto LI.O secured $1.1 billion when it hit the public markets in late July.

(Reporting by Scott Murdoch in Hong Kong; Editing by Clarence Fernandez)

((Scott.Murdoch@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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