Nio Inc (NYSE: NIO) shares have resumed trading in Singapore after a brief suspension due to a new share offering, with shares down 5.31 percent in Singapore and 6.85 percent in Hong Kong. The company announced its plan to raise $1 billion through a new share offering, priced at an 11 percent discount to the previous trading day.
The overnight performance of Nio’s American depositary shares (ADSs) saw a decline of 8.92 percent, closing at $5.72 on Wednesday. The Singapore-listed shares were temporarily halted about an hour before the market close yesterday, while the Hong Kong market was nearing its close.
The new share offering is priced at $5.57 per ADS, representing an 11 percent discount to its previous US closing price. Nio intends to issue up to 181,818,190 class A ordinary shares, comprising ADSs and common shares. The allocation of shares will be based on investor interest, distributed between the ADS offering and the ordinary share offering.
The company aims to complete the ADS offering around September 11 and the ordinary share offering around September 17. The proceeds from the offering will be used for R&D in EV core technologies, developing future technology platforms and vehicle models, expanding its battery swap and charging network, strengthening its balance sheet, and for general corporate purposes.
The pricing of the share offering signifies an 11 percent discount to Nio ADS’s closing price on the previous trading day. This move is expected to bolster the company’s financial position and support its growth strategies in the competitive electric vehicle market.
