QTT, NIO Trading Halted: Qutoutiao Stock Up 146%; Nio Down 10%

Tencent-backed Qutoutiao lifted off on the Nasdaq today under the ticker symbol "QTT," raising $84 million in its IPO.

CapitalWatch Staff
    Sep 14, 2018 11:19 AM  PT
QTT, NIO Trading Halted: Qutoutiao Stock Up 146%; Nio Down 10%
resource from: Qutoutiao team gathers on the Nasdaq Friday on the day of its IPO (Source: Nasdaq)   
Qutoutiao team gathers on the Nasdaq Friday on the day of its IPO (Source: Nasdaq)

The stock of Qutoutiao Inc. (Nasdaq: QTT) more than doubled to $17 per American depositary share in its first hours of trading Friday as the Nasdaq Global Market halted the trading a number of times, along with Nio Inc. (NYSE: NIO) on its third day of volatile trading.

China's second-largest mobile content aggregator, Qutoutiao, lifted off on Wall Street today, raising $84 million in a sale of 12 million American depositary shares priced at $7, the lower end of the expected range. Within the first hours, shares were trading up 146 percent, interrupted by trading halts.


Shares in Qutoutiao skyrocketed 146 percent to $17 per ADS on the day of debut.

(Source: Thomson Reuters Eikon)

Earlier today, the stock exchange halted the trading of Chinese electric vehicle maker Nio, which went public on Wednesday at $6.26 per ADS and soared 76 percent Thursday. Today, Nio's shares dropped as much as 18 percent in the morning before climbing up to $10.72 per share in the afternoon, down 10 percent.


The stock of Nio was at $10.72 per share in the afternoon Friday, down 10 percent intraday, 

interrupted by volatility trading halts on the Nasdaq.

(Source: Thomson Reuters Eikon)

Qutoutiao's offering was downsized from the $300 million targeted in Qutoutiao's preliminary prospectus filed last month, as well as from the $144 million listed in recent amendments.

The Shanghai-based company provides customized news feeds to users based on their search results and selected topics of interest.

In March, one of China's Big Three, Tencent Holdings Ltd. (HKEX: 0700), led a pre-IPO investment of more than $100 million in the startup, raising its valuation to between $1.3 billion to $1.5 billion. In addition, rumors circulated on Chinese media saying that the tech giant has also made an investment in the app last year.

Underwriters on the deal include Citigroup, Deutsche Bank Securities, China Merchants Securities (HK), UBS Investment Bank, and KeyBanc Capital Markets. An additional 1.8 million ADSs could be sold through an over-allotment. 

Upon completion of the IPO, Qutoutiao's co-founder and executive chairman, Eric Siliang Tan, would control 73 percent of the voting power in the company.