For William Li, Founder and CEO of the recently public EV startup NIO, the past few days must have been unforgettable. Priced near the bottom of its target range, NIO officially began trading on the New York Stock Exchange (NYSE) on Sept. 12. After a rocky first day, the Chinese EV maker closed up 76 percent on its second trading day.
NIO first submitted its IPO prospectus on Aug. 14, hoping to raise $1.8 billion. The company updated its prospectus half a month later and set terms to raise a total of $1.32 billion. Eventually, NIO raised around $1 billion from its IPO.
Although the offering is far below its original fundraising target, it is still the third largest offering in the U.S. by a Chinese company this year. And Li seems to be satisfied with the result, according to TMTPost.
On its first day, NIO’s shares opened at $6 and dropped to a low $5.35, but later bounced back to $6.60 as the market closed, giving the company a market capitalization of $6.4 billion.
After a turbulent first day, the shares jumped as much as 92 percent before closing at $11.6, a 75.76 percent increase from the previous day, pushing its market value to almost $12 billion.
NIO has proclaimed its desire to be the Chinese answer to Tesla. Like Tesla, NIO has faced problems with heavy losses and its promised 10,000 vehicles delivered by the end of the year.
As shown in the prospectus, as of August, the company had delivered 1,381 units, but still had 15,761 unfulfilled prepaid orders. On average, each batch of vehicle deliveries has been delayed by about a month, according to Li.
Besides Tesla, NIO also faces domestic competitors such as Xpeng Motors and BYTON, as well as established automakers such as BMW, Volkswagen and Ford.