Chinese Electric Car Maker Nio Slumps Early, Closes Up, in its U.S. Debut
Shares in NIO dipped as much as 15 percent before rebounding late Wednesday.
(Updated to include closing stock price)
Shares of Chinese electric carmaker Nio Inc. (NYSE: NIO) fell as much as 15 percent in their market debut, but rebounded later and closed up more than 5 percent for the day.
A day after its IPO was priced at $6.26 per share, just above the lower end of its expected range, shares in the Shanghai-based company rallied late and ended up 34 cents at $6.60 per share.
Shares in NIO dipped as low as 15 percent in early trading, then recovered to close at $6.60 per share, up 34 cents from the offering price.
The company faced pressure from the beginning as it priced 160 million shares at $6.26, just 1 cent above the low end of its $6.25 to $8.25 target price range, dragged down by investor concerns about the prospects of chief competitor Tesla Inc. (Nasdaq: TSLA).
With a capitalization of nearly $6 billion, the company, backed by Chinese tech heavyweight Tencent Holdings Ltd. (HKEX: 0700), is the third-biggest U.S. listing by a Chinese firm this year.
NIO launched its first mass-produced electric vehicle, the ES8, on Dec. 16, and started deliveries on June 28. A sports utility vehicle, the ES8 is a seven-seater with an aluminum alloy body and carried a price tag of 448,000 yuan ($70,000) before incentives.
(Reuters contributed to this article)