Xpeng, the China-based electric vehicle (EV) producer backed by corporate investors Alibaba, Duowan, Foxconn, UCar and Xiaomi, filed for an initial public offering on the Stock Exchange of Hong Kong on Wednesday.
The offering will involve the company issuing 85 million class A ordinary shares priced at lower than HK$180 ($23.20) apiece, which would raise up to $1.97bn. The final price will be determined after June 30.
Xpeng had already floated on the New York Stock Exchange in a $1.5bn IPO in August 2020, and the latest flotation represents a dual-primary listing, where the company will follow regulations in both the United States and Hong Kong.
JP Morgan and BofA Securities are joint global coordinators for the offering and are being joined by fellow joint lead managers ABC International, BOC International and Futu Holdings.
Founded in 2014, Xpeng manufactures smart EVs that come with a self-driving mechanism and intelligent in-vehicle system. It booked just under $1.07bn in net revenue in the past financial year, making a net loss of RMB650m (about $100m) in the same period.
The proceeds from the offering will go to technology development, business expansion, the improvement of the company’s production capabilities and general corporate purposes.
Xpeng had closed a $900m series C-plus round in the same month as the US listing, according to a securities filing. E-commerce group Alibaba’s Taobao China unit provided $215m, investing alongside Qatar Investment Authority and Mubadala Investment, which contributed $100m each.
Anatole Investment Management, Matrix Partners China, Tairen Alpha Fund, ZWC Partners, CloudAlpha, Aspex Management, Coatue Management, Hillhouse Capital, Sequoia Capital China, Neumann Capital and Shengyu Ventures filled out the series C-plus round.
The company had previously received $1.7bn in funding in total, which included a $400m series C round in late 2019 featuring electronics maker Xiaomi, online gaming network operator Duowan Entertainment, Matrix Partners China, Shunwei Capital and Markarian Investments.
Primavera Capital Group, Morningside Venture Capital, Hillhouse Capital, Eastern Bell Venture Capital, K11 Investment and Xpeng co-founder, chairman and chief executive He Xiaopeng had all participated in a $585m series B-plus round in mid-2018 valuing it at $3.7bn.
Alibaba had already taken part in a $348m series B round earlier that year, investing alongside contract manufacturing group Foxconn, IDG Capital, Yunfeng Capital, China International Capital Corporation, Morningside, GGV Capital, Matrix Partners China and Yuri Milner.
Xpeng had completed a $324m round led by chauffeured car service UCar in 2017. Everbright Zhongying Capital, Lightspeed Venture Partners and Kinzon Capital were among its earlier shareholders, as were Alibaba, GGV Capital, Morningside, IDG Capital, Matrix Partners and Shunwei Capital.
Taobao China and its parent firms Taobao and Alibaba Group will hold 15% of Xpeng’s class A shares after the listing, while Shanghai Keji Enterprise Management Partnership’s Pacific Rays subsidiary and its general partner Tianjin Hexie Qingyu Investment Management Partnership, a unit of Xizang Qingyu Venture Capital Management, will have 6%.
He Xiaopeng will own 85.1% of the company’s class B shares, 80% through Simplicity Holding and 5% through a vehicle known as Respect Holding. The remaining 14.9% is owned by company co-founder Xia Heng’s Efficiency Investment vehicle.
