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Shares of XPeng Inc. dropped in premarket trading 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.
XPeng XPEV, +0.81% had previously expected to sell 40 million ADS to the public, and the pricing was 7.6% below Tuesday’s closing price of $48.69.
The stock fell 3.5% ahead of Wednesday’s open. It had bounced 0.8% on Tuesday, to snap a three-day losing streak in which it shed 13.8%.
Wednesday’s weakness bucks the strength seen in other China-based EV makers, as shares of Nio Inc. NIO, +3.21% rose 0.5% in premarket trading and Li Auto Inc. LI, +5.78% rallied 1.8%.
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 17.1% this month through Tuesday, but has soared 169.5% over the past three months. In comparison, Nio shares have run up 157.4% the past three months and Li Auto’s stock has climbed 110.8%, while the iShares MSCI China exchange-traded fund MCHI, +0.31% has advanced 9.9% and the S&P 500 index SPX, +0.28% has gained 8.9%.
