Nio, a prominent player in the global smart electric vehicle market, has recently announced an expansion in its new share offering. The company has priced its new shares at HK$29.46 per share, representing a 9.49 percent discount to its closing price in Hong Kong.
The electric vehicle maker plans to issue 136,800,000 new class A ordinary shares, an increase from the initial announcement of up to 118,793,300 shares. This upsized offering is valued at HK$4.03 billion and is expected to be completed around April 7, subject to customary closing conditions.
The placement agents for this offering include Morgan Stanley Asia Limited, UBS AG Hong Kong Branch, China International Capital Corporation Hong Kong Securities Limited, and Deutsche Bank AG, Hong Kong Branch.
Nio intends to utilize the net proceeds from the placement for research and development of EV technologies and new products, bolstering its balance sheet, and general corporate purposes.
The company’s decision to issue new shares comes at a crucial time when its vehicle deliveries have been underwhelming, particularly with the L60 SUV from its sub-brand Onvo falling short of expectations. Nio’s financial position has also been a concern, as highlighted in its recent fourth-quarter earnings report.
Despite facing challenges, Nio remains optimistic about its future prospects and is taking proactive measures to secure additional funding through this new share offering. The company’s commitment to innovation and growth in the EV market is evident in its strategic decisions.
It is important to note that the Placement Shares have not been registered under the Securities Act or any state securities laws, and may not be offered or sold in the United States or to U.S. persons. The Equity Placement is expected to close on or around April 7, 2025, pending the fulfillment of closing conditions.
This announcement underscores Nio’s dedication to advancing smart electric vehicle technologies and further solidifying its position in the competitive EV market. As the company navigates through challenges, its resilience and strategic initiatives continue to drive its growth trajectory.
