The company said that the offering would consist of both an offering of the company’s American depositary shares and an offering of its Class A ordinary shares.
NIO Inc. (NIO) on Wednesday announced the pricing of its $1 billion equity offering relating to a total of 181.8 million Class A ordinary shares of the company. NYSE-listed shares of the company tumbled over 10% at the time of writing.
The company stated that it would comprise an offering of the company’s American depositary shares (ADSs) and an offering of its Class A ordinary shares.
The ADSs will be offered at a public offering price of $5.57 per ADS, with the offering expected to close on or about September 11. This represents an 11% discount to the stock’s closing price on Tuesday.
The Class A ordinary shares, meanwhile, are being offered at an offering price of HK$43.36 per share. The closing of the ordinary share offering is expected on or about September 17.
On Stocktwits, retail sentiment around NIO stock stayed within ‘bearish’ territory over the past 24 hours, while message volume stayed at ‘low’ levels.
The Chinese EV maker currently plans to use the net proceeds from the equity offering to invest in the research and development of core technologies for smart electric vehicles, develop future technology platforms and vehicle models across its brands. It also intends to utilize the funds to expand its battery swapping and charging network, further strengthen its balance sheet, and for general corporate purposes.
Earlier this month, Nio reported total revenues of RMB19.01 billion ($2.66 billion) for Q2, which was below an analyst estimate of RMB19.74 billion, according to data from Fiscal AI. The net loss for the quarter was RMB4.99 billion, representing a 1% decrease from the second quarter of 2024.
For the third quarter, the company expects to deliver between 87,000 and 91,000 vehicles, representing an increase of approximately 40.7% to 47.1% compared to the same quarter in 2024. The higher delivery expectations are spurred by the company’s new vehicle models, including the Onvo L90 and the new Nio ES8. CEO William Li noted in a post-earnings call that with the new vehicles, the company sees a market demand that is higher than what it expected before launch. While the L90 was officially launched on July 31, the ES8 was formally unveiled last month and made available for pre-orders, with user deliveries expected to begin in late September.
Total revenue for Q3 is expected to be between RMB21.81 billion and RMB22.88 billion.
NIO stock has risen 29% this year and approximately 3% over the past 12 months.
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