Nio, the electric vehicle (EV) maker, recently completed an offering of 136,800,000 class A ordinary shares at an issue price of HK$29.46 per share. This offering amounted to a total of HK$4.03 billion ($520 million) and was sold in offshore transactions to non-US persons. The placement was facilitated by Morgan Stanley, UBS, China International Capital Corporation, and Deutsche Bank acting as the placing agents.
The company had initially announced the issuance of up to 118,793,300 class A ordinary shares but later expanded it to 136,800,000 shares. The issue price of HK$29.46 per share represented a 9.49 percent discount to the closing price of HK$32.55 in Hong Kong. Nio plans to utilize the net proceeds from the placement for research and development of EV technology, developing new products, strengthening its balance sheet, and general corporate purposes.
However, the timing of the share placement coincided with escalating global trade tensions, particularly with the announcement of new tariff measures by US President Donald Trump. This led to a significant selloff in global markets, including Hong Kong’s EV sector. As a result, Nio’s stock price closed down by 14.78 percent to HK$24.50 in Hong Kong, marking one of its largest one-day declines.
Despite the pressure on its share price, Nio remains focused on advancing its EV technology and product development. The company’s ADS also experienced a decline in US premarket trading, falling by 4.62 percent to $3.30 at the time of writing.
Overall, Nio’s completion of the share offering reflects its commitment to innovation and growth in the EV industry. The company continues to navigate market challenges while pursuing its strategic objectives.
