Shares of Phoenix Motor Inc. PEV, -45.87% plunged out of the gate Wednesday, as the maker of electric drive systems and electric vehicle’s stock opened 13.3% below the initial public offering price and continued to trade lower. The company’s downsized IPO priced overnight at $7.50, at the lower end of the expected range of between $7.00 and $9.00. The company raised $15.8 million in the IPO, as it sold 2.1 million shares, down from expectations of 2.5 million shares. The stock’s first trade on the Nasdaq was at $6.50 at 10:22 a.m. Eastern for 281,727 shares, to value the company at about $130 million. The stock has fallen even further, to trade recently 44.0% below the IPO price. Phoenix Motor went public at a tough time for the IPO market, as the Renaissance IPO ETF IPO, +0.74% has tumbled 43.0% year to date while the S&P 500 SPX, -1.08% has lost 12.9%.
