NIO shares close at $6.60 after market debut

Shanghai (Gasgoo)- On September 12, Chinese electric vehicle startup NIO went public on the New York stock exchange, the first Chinese electric vehicle startup listed in the U.S. NIO priced its shares at $6.26 in the initial public offering, just at the bottom of its $6.25-$8.25 target price range, and offered 160M shares to the market. The offering valued the startup at $6.4 billion. 

NIO shares decline as much as 13% after its market debut, but the growth rate were up to 11% to $6.93 in afternoon trading. Finally, NIO shares closed at $6.60 on Wednesday, giving it a market capitalization of $6.77 billion.

Ever since its foundation, NIO has secured a total of $2.452 billion via six financing rounds and the D financing round valued it at $4.7 billion. Without any revenue in 2016 and 2017, the company’s revenue reached RMB 45.99 million in the first half of this year, reporting a loss of RMB 3.326 billion.

NIO started to deliver its first volume manufactured model, the ES8 on June 28, 2018. By the end of July, the ES8 deliveries totaled 481 units while there were still 4,989 unfulfilled reservations with non-refundable deposits. 7 NIO housed have been put into operation by July 31 and the number is expected to be 15 across 13 cities by the end of this year.

NIO plans to produce its second model, the ES6, at the end of 2018 and the delivery will start from the first half of next year. In 2020, NIO will launch the sedan ET7. All models will be built by Anhui Jianghuai Automobile Group (JAC) while its own factory is expected to start production in 2020.