On December 9, Xiaopeng Auto (ticker symbol "XPEV") announced the issuance of an additional 48 million U.S. stock-priced depositary shares ("?ADS"). Each ADS represents two Class A ordinary shares of the Company, and the public offering is priced at ?45 per ADS, with expected revenues of $2.16 billion, making it the largest initial stock offering in the history of Chinese stocks.

If the underwriters exercise the green shoe at all, the offering will raise $2.484 billion. The underwriters will have a 30-day option to purchase up to a total of 7.2 million ADSs from the company.

The offering is expected to close on Dec. 11, 2020, based on customary closing conditions. Credit Suisse, JPMorgan Chase, Bank of America and Citigroup are acting as co-underwriters for the offering.

The funds raised will be used for the following: research and development of smart electric vehicles, as well as software, hardware and data; sales and marketing, expansion of sales and service channels and supercharging network, and international market expansion; potential strategic investments in core smart electric vehicle technologies; and general corporate purposes, including working capital requirements, according to the announcement.

What's worth noting is that Xiaopeng Auto was officially listed on the New York Stock Exchange in August 2020 under the ticker symbol "XPEV". The issue price of $15 per ADS, after the exercise of the green shoes to raise a total of 1.7 billion U.S. dollars, the highest amount of financing in the history of global new energy vehicles IPO record.

The issue was priced at $?45 per ADS, three times the IPO price, which is the lowest discount to the pre-announcement share price and the highest premium to the IPO pricing among all the initial share issuances of Chinese listed companies going to the U.S. with a financing size of more than $1 billion.

Some industry insiders believe that the higher pricing of the issue could not have been achieved without the stock market's performance in mid- to late-November and early December.

Particularly in November this year, after the release of the third-quarter earnings data, the shares of new car-making forces such as Xiaopeng Automobile went up. on November 23, Xiaopeng Automobile surged 33.92% to close at $72.17 per share. On that day, the company's market capitalization also hit a new high with the increase in share price, with Xiaopeng Auto's market capitalization reaching as high as 51.97 billion U.S. dollars, surpassing Honda and ranking 10th in the global market capitalization of car companies.

But this strong momentum has not been able to maintain, after the peak of the Peng car shares continuously lower, compared with the peak on November 23rd closed at $ 72.17 per share, as of yesterday ($ 44.65 per share) has fallen 38%.

Yesterday's close, Xiaopeng Auto fell 8.3 percent to close at $44.65 a share, down 0.008 percent from its offering price of $?45 per ADS.

This article comes from the authors of Motor Home Car, and does not represent the views of Motor Home's position.