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, -4.79% slumped 4.7% in premarket trading, after falling 11.9% the past two days and tumbling 23.2% last week. That 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.