Market Overview

Nio Prices Upsized 68M Share Follow-On Offering At 7% Discount

Share:
Nio Prices Upsized 68M Share Follow-On Offering At 7% Discount

Nio Inc – ADR (NYSE: NIO) shares were trading down premarket Monday after the Chinese electric vehicle manufacturer priced its upsized equity offering at a discount.

What Happened: Nio said it has priced its offering of 68 million ADSs, each representing one Class A ordinary share of the company, at $39, a 7.1% discount to the $41.98 price at which it closed Friday.

The size of the offering represents an upward revision from the 60 million shares initially it planned to sell.

At the offering price, the company is expected to raise about $2.653 billion in gross proceeds.

This does not account for the incremental 10.2 million shares the company has set aside for covering over-allotment, if any.

Related Link: Nio's Li Talks China's EV Market Potential, Competitive Advantage At Beijing Event

Why It's Important: The offering, Nio's third of the year, is likely to come in handy for the company to pursue technological advancement, improve customer service and enter new markets.

Nio is reportedly close to commencing expansion into Europe, according to a report in CNTech Post.

Zhang Hui, general manager of Nio Germany, recently met with Wang Weidong, commercial counsellor of the Chinese Embassy in Germany, through video Dec. 9 to discuss the company's expansion plans, the report said.

Nio peers Xpeng Inc – ADR (NYSE: XPEV) and Li Auto Inc. (NASDAQ: LI) have recently raised $2.36 billion and $1.36 billion, respectively, in follow-equity offerings.

NIO Price Action: In premarket trading Monday, Nio shares were down 5.05% to $39.86. 

Related Link: Tesla's $5B Equity Sale: What You Need To Know

Courtesy photo. 

 

Related Articles (NIO)

View Comments and Join the Discussion!

Posted-In: China electric vehicles EVsNews Offerings Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com