Shares of Chinese auto sellerJiuzi Holdingsrocketed 272% in their first day of trading.
Jiuzi (ticker: JZXN) stock opened Tuesday afternoon at $45, nine times its offer price, on the Nasdaq. Shares peaked at $49.01, before falling and closing at $18.62, up 272% from their IPO price.
The retailer continues the trend of Chinese companies soaring on their first day of trading on U.S. exchanges.UTime(UTME), a China-based mobile phone maker,shot up 875%in April when it opened on the Nasdaq.Cloopen Group Holding,(RAAS) a provider of cloud-based communication services in Beijing,surged 200%in February when it began trading on the New York Stock Exchange.
The rousing debut of Jiuzi also comes during a correction in the IPO market. Last week, three companiespulled their deals after a broad market selloff. Only a trio of companies are listing their shares this week:Squarespace, Procore Technology andOatly Group.
Jiuzi’s IPO was a long time coming. The Hangzhou, China, companyconfidentially filedfor an IPO in July 2020.It set terms in November, planning to offer 5 million shares at $4 to $5 each. Late Monday, Jiuziraised $26 millionafter selling 5.2 million shares at $5 a share. Boustead Securities is the underwriter on the deal.
Jiuzi franchises and operates retail stores in China that sell new-energy vehicles, a prospectus said. Nearly all of the cars it sells are battery-operated electric but some are also plug-in. The company has 31operating franchise stores and one company-owned store in China.
The company is profitable. Jiuzi reported $3.4 million in income for the year ended Oct. 31, 2020, compared to $3.2 million in profit for the same time period in 2019. Revenue rose nearly 3% to $8.2 million in 2020,a prospectus said.
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