Following its competitors NIO and Li Auto, Xpeng is also aiming to finance via IPO to get through the hard times.
Image Credit: Xpeng official website
Xpeng is very likely to apply for an IPO on the NYSE this Friday, where it will be officially listed on August 27, as reported by IFR. Xpeng plans to raise USD 1 billion, with a market value exceeding USD 4 billion. Earlier this month, Xpeng filed for its IPO.
Xpeng is one of the leading emerging forces in the Chinese EV market. Following its competitors NIO (NIO:NYSE) and Li Auto (LI:NASDAQ), Xpeng is also aiming to finance via IPO to persevere through a period of contraction for the previously highly buoyant investment segment. Due to the high R&D expenses, emerging EV manufacturers are all suffering a notable operational loss. Xpeng’s expense of R&D is USD 293 million in 2019, which led to a USD 522 million net loss.
Xpeng has raised USD 2.9 billion so far, with the latest pre-IPO rounds from Sequoia Capital China, Hillhouse Capital, and Alibaba at the end of last month.
Operational analysis about Xpeng here.