Hot stock: Nio drops as much as 11.6% on US$1 billion notes issuance

SHARES of mainboard-listed Nio plummeted to a 90-day low on Wednesday (Sep 20) after it announced the pricing of a two-tranche convertible bond, from which it plans to use the US$1 billion proceeds to pare debt and strengthen its balance sheet. The counter hit a low of US$8.75, down 11.6 per cent or US$1.15 as at 2.24 pm. The last time it closed near this level was on Jun 23, 2023.

It later recovered slightly to close at US$8.80 on Wednesday, down 11.1 per cent or US$1.10, after 316,080 shares worth US$2.8 million changed hands.

The Chinese electric vehicle (EV) maker raised US$500 million in six-year convertible notes at an interest rate of 3.875 per cent, and the same amount in seven-year notes at a 4.625 per cent interest rate.