Nio completes US$1.2 billion share sale to fund EV growth
The Shanghai-based electric-vehicle maker sells American depositary shares at a public offering price of US$5.57 apiece
[SINGAPORE] China electric-vehicle (EV) maker Nio announced on Wednesday (Sep 17) that it has completed its US$1.2 billion equity offering to support its growth and EV research.
A total of 209 million Class A ordinary shares of the company was on offer, and consisted of around 161 million American depositary shares (ADS), nearly 21 million Class A ordinary shares of Nio, and more than 27 million ADS pursuant to the underwriters’ full exercise of their option to purchase additional ADS on Sep 10.
The Shanghai-based EV maker sold the ADS at a public offering price of US$5.57 each, and HK$43.36 per Class A ordinary share.
Nio said in a statement that it plans to use the net proceeds from the offering to develop future vehicle platforms and models, expand its battery swopping and charging network, and invest in research and development (R&D) of core technologies for smart EVs. It also intends to use the proceeds to further strengthen its balance sheet, and for general corporate purposes.
Morgan Stanley Asia, UBS Securities, the Hong Kong branches of UBS and Deutsche Bank acted as representatives for the underwriters for the equity offering.
This is the second share sale by Nio this year, after the company raised HK$4 billion (S$658.8 million) in March, reported Bloomberg News.
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The carmaker said in June that it is aiming to reduce its R&D spending by as much as 25 per cent to help reach its breakeven target by the fourth quarter.
Since its founding in 2014, the EV company has not posted a profit, and has had to battle overcapacity and a long-drawn price war within China’s EV market.
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