Shares of XPeng Inc. resumed their selloff Wednesday, after the China-based electric vehicle maker’s upsized public share offering priced at a discount of nearly 8%.
The company raised $2.16 billion in the offering, as it sold 48 million American depositary shares (ADS) at $45 per ADS.
The stock shed 8.3% in afternoon trading. It had bounced 0.8% on Tuesday, to snap a three-day losing streak in which it shed 13.8%.
Shares of other China-based EV makers also fell, reversing earlier gains seen before the opening bell. Nio Inc.’s stock
slid 4.8% in afternoon trading, erasing a premarket gain of as much as 1.6%, while Li Auto Inc. shares
reversed an early intraday gain of as much as 3.9% to trade down 2.1%.
XPeng could sell up to an additional 7.2 million shares, if the underwriters of the offering exercise all of the options granted to cover overallotments. That could boost what XPeng raises to roughly $2.5 billion.
The proceeds will be used for research and development of XPeng’s smart EVs, sales and marketing, potential strategic investments and general corporate purposes.
Xpeng’s stock, which went public on Aug. 27, has tumbled 24.0% this month, but has still soared 147.0% over the past three months. In comparison, Nio shares have run up 145.2% the past three months and Li Auto’s stock has climbed 106.3%, while shares of both the iShares MSCI China exchange-traded fund
and the S&P 500 index
have gained 8.0%.