Two foreign electric vehicle makers and three SPACs went public this past week. A wave of filings brought 27 companies into the IPO pipeline.
XPeng (XPEV), a Chinese electric vehicle maker, upsized and priced above the range to raise $1.5 billion at an $11.2 billion market cap. While the company has yet to achieve positive gross margins, its P7 model has seen strong early reception, and it came to market below close peers Li Auto (LI) and NIO (NIO), both of which have performed well. Insiders and a new investor indicated on $500 million of the IPO. XPeng popped 41% on its first day of trading and finished up 52%.
Canadian electric commercial vehicle maker GreenPower Motor (GP) upsized and priced within the range to raise $37 million at a $361 million market cap. The company is currently listed on the TSX Venture Exchange (GPV) and the OTCQB (GPVRF). Fast growing and unprofitable, the company's gross margin has been decreasing, and it has yet to establish an ongoing source of revenue. GreenPower finished 5%.
Three SPACs raised $1.6 billion this week, led by FTAC Olympus Acquisition (FTOCU), the fourth SPAC formed by The Bancorp's management, which raised $750 million to acquire a fintech business. Cantor Fitzgerald's second SPAC CF Finance Acquisition II (CFII) raised $500 million and tech SPAC Burgundy Technology Acquisition (BTAQU) raised $300 million.
5 IPOs During the Week of August 24th, 2020 | |||||
|---|---|---|---|---|---|
Issuer | Deal | Market Cap | Price vs. | First Day | Return |
XPeng | $1,496M | $11,195M | 25% | +41% | +52% |
Manufactures smart electric SUVs and sedans in China. | |||||
GreenPower Motor | $37M | $361M | -5% | +5% | +5% |
Canadian manufacturer of battery-electric commercial vehicles. | |||||
Burgundy Technology Acq. | $300M | $385M | 0% | +0% | +0% |
Blank check company formed by the former CEO of HP and a former Citi executive | |||||
