Chinese electric car maker NIO slumps in US debut

Chinese electric car maker NIO slumps in US debut

REUTERS: Shares of Chinese electric carmaker NIO Inc fell as much as 15 percent in their market debut, a day after its IPO was priced at the lower end of its expected range.

Shares opened at US$6 and fell to a low of US$5.35, giving the company a market capitalization of US$5.52 billion.

The company priced 160 million shares at US$6.26 on Tuesday, just above the low end of its US$6.25 to US$8.25 target price range, raising US$1 billion, dragged down by investor concerns about the prospects of chief competitor Tesla Inc.

The company, backed by Chinese tech heavyweight Tencent Holdings Ltd, is the third-biggest U.S. listing by a Chinese firm this year.

(Reporting by Diptendu Lahiri in Bengaluru; Editing by Sriraj Kalluvila)

Source: Reuters

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