China EV Startup U Power Soars 620% for Biggest US IPO Pop of the Year

(Bloomberg) — The raucous debut for China-based U Power Ltd. sent shares soaring 620% and triggered a bevy of halts for volatility as investors flip shares of the newest company to list in the US.

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The startup, which aims to focus primarily on battery-swapping technology for electric vehicles, surged as high as $75 before closing at $43.18 after pricing its initial public offering at $6. It capped the best debut among companies to list in the US this year after blowing past the 255% boom seen for shares of Multi Ways Holdings Ltd.

U Power was halted at least 22 times Thursday after listing on the Nasdaq Capital Market. The company’s gross proceeds are expected to be about $14.5 million, before deducting underwriting discounts and commissions, and other offering expenses. WestPark Capital Inc. is the sole book running manager for the offering and Orientiert XYZ Securities Limited is a co-manager.

To be fair, extreme volatility among tiny, new stocks is nothing new for investors. IPOs frequently experience gut-wrenching trading in their opening days and weeks. U Power’s rally came as more than 3.3 million shares were traded.

(Updates with share movement throughout.)