Xpeng Motors has received additional funding through the exercise of the over-allotment option granted to the international underwriters in its recent global offering.

The international underwriters partially exercised the over-allotment option after the trading session on July 14, 2021, involving a total of about 12.08 million Class A ordinary shares, the company said in an announcement on the Hong Kong Stock Exchange on Wednesday.

The shares in the over-allotment were priced at HK$165 ($21) each, the same as it previously priced in its Hong Kong listing, implying net additional proceeds of about HK$1.97 billion ($250 million) for Xpeng.

The HKEx has approved the listing of the over-allotted shares and they will be available for trading starting at 9 a.m. on July 19, according to the announcement.

Late last month, Xpeng said it had granted over-allotment options to international underwriters, which they can exercise at any time on or before July 30, whereby the company may be required to issue up to a total of 12.75 million Class A ordinary shares.

The latest announcement means that Xpeng's international underwriters have exercised approximately 95 percent of their over-allotment option.

In the international offering and the Hong Kong public offering, Xpeng plans to use the net proceeds to expand its product portfolio and develop more advanced technologies, to accelerate the company's business expansion by enhancing brand recognition, acquiring customers with omnichannel marketing strategies, and increasing sales and service touchpoints domestically and internationally.

Xpeng will also use these funds to enhance production capabilities, including expanding capacity, upgrading production facilities, and developing production technologies. They will also be used for general corporate purposes, including for working capital.

Xpeng closed down 3.21 percent to HK$151 on Wednesday, about 8.5 percent lower than its offering price of HK$165.

Notably, Xpeng's US-traded ADR has fallen an even greater of 14 percent since July 7.