Jiuzi is a new-energy vehicle retailer in in Hangzhou, China, which has a labyrinth of roadways.
Zhaojiankang/DreamstimeShares of Chinese auto seller Jiuzi Holdings rocketed 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 companies pulled their deals after a broad market selloff. Only a trio of companies are listing their shares this week: Squarespace, Procore Technology and Oatly Group.
Jiuzi’s IPO was a long time coming. The Hangzhou, China, company confidentially filed for an IPO in July 2020. It set terms in November, planning to offer 5 million shares at $4 to $5 each. Late Monday, Jiuzi raised $26 million after 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.
Write to Luisa Beltran at luisa.beltran@dowjones.com
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May 19, 2021 at 03:33AM
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Chinese Auto Retailer Soars 272% in First Day of Trading - Barron's
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