China-based EV maker looking to sell 40 million U.S.-listed shares to the public; Li Auto’s stock set to snap longest-ever losing streak
Shares of XPeng Inc. dropped Monday, to extend last week’s selloff, after the China-based electric vehicle maker disclosed a public offering of 40 million shares.
The stock XPEV, -2.11% slumped 2.9% in afternoon trading, and has dropped 14.5% amid a three-day losing streak. The stock had tumbled 23.2% last week, which was the biggest weekly loss since the stock started trading in Aug. 27.
The company said in a filing with the Securities and Exchange Commission that it was looking to sell 40 million Class A American depositary shares (ADS) to the public, which represents 80 million ordinary shares. That offering represents about 5.4% of the U.S.-listed shares outstanding, based on data provided by FactSet.
Credit Suisse, J.P. Morgan, BofA Securities and Citigroup are the underwriters of the offering.
The selloff in Xpeng’s stock last week was part of broader weakness among its peers, as some analysts cut ratings on valuation concerns and other companies also looked to sell shares.
Shares of Li Auto Inc. LI, +3.14% bounced 3.5% on Monday, putting it on track to snap a seven-day losing streak in which they plummeted 30.6%, and Nio Inc.’s stock NIO, +4.81% climbed 5.2% Monday after shedding 20.3% last week.
Meanwhile, the iShares MSCI China exchange-traded fund MCHI, -0.51% lost 0.6% in afternoon trading after losing 2.1% last week, and the S&P 500 index SPX, -0.19% slipped 0.3% after gaining 1.7% last week.