Chinese electric-car maker Xpeng Inc. XPEV, +4.05% said Thursday it is planning a global offering of 85 million Class A shares, split between an international offering of 80.75 million shares and a Hong Kong offering of 4.25 million shares. The Tesla TSLA, +5.27% rival is already listed on the New York Stock Exchange and has a market value of more than $30 billion. It won approval for an offering from Hong Kong regulators this week, The Wall Street Journal reported, citing a person familiar with the situation. Its U.S.-listed shares were up about 1% in premarket trade. There are eight banks underwriting the global offering, led by JP Morgan and BofA Securities. Proceeds will be used to invest in its proprietary software, including its Xpilot and Xmart operating systems, to develop new models and upgrade its hardware, for other technology investments, marketing and to expand its network of stores and charging stations. China is a key market for electric vehicles, and new entrants such as Xpeng and NIO NIO, +2.97% have emerged in recent years as rivals to Elon Musk’s Tesla. Earlier this year, China raced past Europe to reclaim its spot as the world’s largest market for electric vehicles, according to analyst research.
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