On December 2, Li Auto filed an F-1 with the US Securities and Exchange Commission (SEC) for the issuance of 47 million additional ADSs for net proceeds of approximately $1.62 billion.
Chinese electric car company Xpeng Motors (NYSE: XPEV) announced today that it plans to issue an additional 40 million ADSs, with an over-allotment option of 6 million ADSs to the underwriters. Following the announcement, Xpeng fell more than 10% in pre-market trading and is now down 7.36 percent.
Each ADS represents two shares of Class A common stock, with a maximum price of $25.33 per additional Class A share, which is calculated as a maximum price per ADS of $50.66. The aggregate amount of the financing is expected to be up to $1.942 billion, after expenses, and $2.23 billion if the over-allotment option is fully exercised.
The aggregate amount of the financing, net of related expenses, is expected to be no more than $1.942 billion, or $2.23 billion if the over-allotment option is fully exercised.
Xpeng expects to use the net proceeds from the proposed offering for (i) research and development of its Smart EVs and software, hardware and data technologies, (ii) sales and marketing and expansion of sales and service channels and supercharging network, as well as the expansion of its footprints in the international markets, (iii) potential strategic investments in core technologies of Smart EV, and (iv) general corporate purposes, including working capital needs.
Credit Suisse Securities, JPMorgan Chase & Co., Banc of America Securities, and Citigroup Global Markets will act as co-underwriters for the Xpeng offering.
On December 2, Li Auto filed an F-1 with the US Securities and Exchange Commission (SEC) for the issuance of 47 million additional ADSs for net proceeds of approximately $1.62 billion.
Approximately 70% of the funds raised by Li Auto will be used for technology development, including: approximately 30% for the research and development of new-generation electric vehicle technologies, including high-voltage platforms, high-charge/discharge rate batteries and ultra-fast charging; approximately 20% for the development of the next BEV platform and future models; and approximately 20% for the development of automated driving technologies and solutions.
According to analysts, China's new energy vehicle boom has been recovering rapidly since the second half of the year, making the capital market highly optimistic about the industry. However, at the same time, in the face of the high cost of car manufacturing, the new Chinese car manufacturing forces still lack of their own hematopoietic capacity.
