Shares of NIO and Li Auto Soar, Xpeng Closes IPO ahead of Schedule
On Aug. 25, UBS boosted the rating of NIO from “sell” to “neutral” and bumped its price target from $1.00 to $16.30.
UBS analyst Paul Gong said the improvement in the company’s sales and operations in 2020 has greatly exceeded previous expectations. After the capital increase, urgent concerns about the company’s financial situation have been alleviated. He warned that the company needs to raise more cash to finance rapid growth, Sina Finance reported.
According to Chnfund, shares of NIO soared 19.17% last night, and its market value soared by $3.4 billion (approximately 23.8 billion yuan). In yesterday’s intraday market, the market value of NIO exceeded $20 billion for the first time. The share price of NIO has risen by more than 500% from its April low.
SEE ALSO: NIO Releases BaaS Battery Rental Service, Takes Lead in Business Model Innovation
NIO’s local rival Li Auto also received an overweight rating from a renowned institution yesterday.
According to Chinese media Zhitong Caijing, Morgan Stanley analyst Tim Hsiao gave Li Auto an “overweight” rating with a target price of $20 on Aug. 25.
According to Chinese media Zhitong Caijing, Morgan Stanley analyst Tim Hsiao gave Li Auto an “overweight” rating with a target price of $20 on Aug. 25.
On Aug. 24, Goldman Sachs gave Li Auto a “buy” rating with a target price of US$20.60.
In addition to the two listed companies, another leading domestic EV force, Xpeng Motors will make its debut on the New York Stock Exchange under the stock code “XPEV” on the evening of Aug. 27.
According to the Latest IPO, since Xpeng has been oversubscribed many times, it planned to close its IPO on Aug. 25, one day earlier than the original plan on Aug. 26.
Pandaily reported earlier that Xpeng Motors planned to issue 85 million American Depositary Shares (ADS) in this IPO with the range of $11 to $13 per ADS.
Xpeng will complete the IPO pricing at least at the upper limit of the issuance range of $13 per share or even higher, meaning its IPO fundraising scale will reach US$1.105 billion, and the IPO market value will reach about $11 billion, the Latest IPO reported.
If the IPO proceeds, the $1.105 billion fundraising scale will surpass Li Auto’s $1.0925 million before its listing in New York at the end of July. Xpeng and Li Auto have both exceeded the $1 billion fundraising scale of NIO when it kicked off trading in the US.
