Chinese EV maker Xpeng increases U.S. IPO size to $1.5 billion

Company had originally planned to raise $1.1 billion

HONG KONG  - Chinese electric vehicle (EV) maker Xpeng has increased the size of its U.S initial public offering (IPO) to about $1.49 billion, two sources with direct knowledge of the matter said.

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The company will price its shares at $15 each, the sources said, after initially indicating they would be sold for $11 to $13 when the deal was launched on Friday.

The 2020 Xpeng G3 model comes in two versions and starts at about $20,000.

Xpeng, which counts Chinese e-commerce titan Alibaba among its backers, had initially targeted raising $1.11 billion.

It had planned to sell 85 million American Depository Shares (ADS) but increased that to about 99.7 million shares following higher-than-expected demand from investors, the sources said on condition of anonymity as the information is not yet public.

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Xpeng declined to comment.

Based on the new size of the deal, Xpeng would be valued at around $11.2 billion following its IPO. Its shares will start trading in New York on Thursday.

There is also a so-called greenshoe option in which another 14.96 million shares can be issued within the next 30 days that would allow Xpeng to raise a further $224.4 million.

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