XPENG debuts on the stock exchange. The things to know.
On Thursday, August 27 at 3:30 p.m. Italian time, the bells at WallStreet will ring. A new IPO is ready to enter the market. It is XPENG (Xiaopeng Automotive Technology). We have been waiting for it for a few months now.
Who is XPENG?
XPENG is a Chinese manufacturer of electric cars. It might bring back memories of Nio, since by now the latter is on everyone’s lips.
Let’s see for a moment who XPENG really is. Established in China in 2014 in Guangzhou, XPENG currently has more than 3,600 employees. Its car fleet consists of only two models: the P7 sedan and the G3 SUV. The P7 itself would be the direct competitor to the Tesla Model 3, which is very reminiscent of it in features and lines. The prices, however, are different from Tesla. The SUV is on sale (in China only) from 20710eur and the Pt from 31700 eur.
XPENG debuts on the stock exchange. What the IPO provides for
Let’s go now to the part that really interests us. The IPO (Initial Public Offering).
XPENG (US98422D1054 – XPEV) will distribute 429,846,135 shares of class B common stock, which sources say will be priced at $15, far higher than the range indicated Friday of $11-$13. A total of $1.49 billion was raised for the IPO, far more than the expected $1.11 billion. 99.7 million ADS (American Depository Shares) were sold compared to the expected 85 million (CNBC Sources). This hints at the strong interest in the stock, which has investors such as Alibaba, Qatar Investment Authority, Abu Dhabi’s soveregin wealth Mubadala, and Xiaomi behind it. Just some small companies!
Following the IPO, XPENG is expected to be worth about $11.2 billion, about half that of Nio.
We all know about Nio and Li’s exploits in the last two days. Li, for those who do not know her, is also a new face in the U.S. market. Also manufacturers of electric cars, they closed the stock market session yesterday with a nice +28 percent.
So there will be a lot of curiosity behind today’s XPENG IPO, and we will be following it closely. I think this title may hold surprises in the future. Perhaps Nio is ahead of XPENG in terms of the market, but the thing that gives me confidence in the latter is the big investors behind it. We will see if the opening stock will tend to do the classic Bump and Dump typical of IPOs of this kind. We will then try to see if there are optimal conditions to enter the market. A good bet would be to bet on the title, forget about it in the drawer, and pull it out after years. But still it would remain a gamble. And we don’t like bets.