Nio Inc (NYSE: NIO) has announced the pricing of its $1 billion stock offering at $5.57 per American depositary share (ADS), which represents an 11 percent discount to the previous trading day’s closing price of $6.28 in the US. This offering will raise $1 billion for the company, with the potential for an additional $150 million if the underwriters exercise their option.
In Hong Kong dollar terms, the offering price for class A ordinary shares comes to HK$43.36 per share. The company expects to complete the ADS offering around September 11 and the ordinary share offering around September 17.
Nio’s plans include issuing up to 181,818,190 class A ordinary shares, including ADSs, with the allocation of shares to be determined based on investor interest between the ADS offering and the ordinary share offering. The company has also granted the underwriters a 30-day option to purchase up to 27,272,729 additional ADSs.
The proceeds from this offering will be used for various purposes, including research and development of core EV technologies, development of future technology platforms and vehicle models, expansion of the battery swap and charging network, strengthening of the balance sheet, and general corporate purposes.
This marks Nio’s second equity financing this year, following a previous offering in March that raised HK$4.03 billion ($520 million). The company’s stock has seen a significant surge in value over the past two months, prompting this latest financing round to further improve its financial position.
Overall, Nio is focused on driving innovation in the electric vehicle industry and expanding its presence in the market through strategic investments and partnerships. The company remains committed to delivering cutting-edge technology and sustainable mobility solutions to consumers worldwide.
