XPeng said Friday that it planned to raise up to $1.11 billion in an initial public offering on the New York Stock Exchange, as investors seem electrified by electric-vehicle makers.
The Guangzhou, China, company said it hoped to sell 85 million American depositary shares at $11 to $13 each.
Each ADS represents two Class A ordinary shares. If the company goes public at $13 an ADS, that would give it a valuation of $9.17 billion, Reuters reported.
“Our Smart EVs appeal to the large and growing base of technology-savvy middle-class consumers in China,” XPeng said in its F-1 filing with the Securities and Exchange Commission.
“We primarily target the mid- to high-end segment in China’s passenger vehicle market, with prices ranging [150,000 yuan, about $21,676, to 300,000 yuan, or $43,352] for our Smart EVs.”
As for the autos’ design, “to optimize our customers’ mobility experience, we have strategically chosen to focus on developing full-stack autonomous driving technology and in-car intelligent operating system, as well as core vehicle systems, including power-train and the electrical and electronic architecture, or the E/E architecture, in-house,” XPeng said.
“We have an omnichannel sales model, which combines a data-driven and targeted online marketing strategy with a physical sales and service network.
"As of June 30, 2020, our physical sales and service network consisted of a total of 147 stores and service centers, which cover 52 major cities in China.”
For the first half of 2020, XPeng posted a loss of $112.6 million on revenue of $141.9 million.