The Shanghai-based EV maker will sell as many as 181.8 million new shares at HK$42.86 to HK$44.46 each
[HONG KONG] Chinese electric-vehicle maker Nio plans to raise about US$1 billion through a share sale to fund its growth.
The Shanghai-based EV maker will sell as many as 181.8 million new shares at HK$42.86 to HK$44.46 each, according to terms seen by Bloomberg News. That means the share sale could raise as much as US$1 billion.
Nio said it will use the proceeds to develop future vehicle platforms and models, expand its battery swapping and charging network, and invest in research and development.
The company, which has not posted a profit since it was founded in 2014, has had to contend with a long-running price war and overcapacity in China’s EV market.
The brand is known for its battery swap model, which allows drivers to quickly change depleted cells with a fully charged battery in minutes. But that also means the company has to build expensive battery swap stations.
The carmaker said in June that it’s aiming to reduce its research and development spending by as much as 25 per cent to help reach its break-even target by the fourth quarter.
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This is the second share sale by Nio this year, after the company raised HK$4 billion (S$658.8 million) in March.
Its American depositary receipts in New York fell in US premarket trading after the announcement. They had climbed about 41 per cent since mid-August.
Morgan Stanley, UBS Group and Deutsche Bank are arranging the latest offering. BLOOMBERG
