Electric vehicle (EV) manufacturer NIO has officially denied recent reports suggesting plans for a substantial capital raise. The rumors sparked widespread discussion and led to market speculation regarding the company’s financial future.
In response to the reports, a spokesperson for NIO made a succinct statement, categorically denying the claims without delving into further details. However, the company later issued a formal statement to address the matter, emphasizing its lack of any ongoing capital-raising activities beyond a recently completed convertible note offering.
NIO’s full statement reads as follows:
“NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO) (âNIOâ or the âCompanyâ) is a pioneer and a leading company in the premium smart electric vehicle market.
The Company has been made aware of certain media speculations claiming that the Company is considering raising certain capital from investors, which have been widely circulated today.
In light of the unusual market activity in the Company’s American depositary shares today, the Company would like to clarify that the Company currently has no reportable capital raising activity, other than the recent convertible notes offering that was completed on September 25, 2023.
The Company is committed to maintaining transparent and timely communication with the public market, and will promptly announce any material information in accordance with applicable laws, listing rules, and best corporate practices.”
Earlier in the day, Bloomberg reported that sources familiar with the matter had indicated that NIO was contemplating raising approximately $3 billion and had approached potential investors in the Middle East. The fundraising, as per Bloomberg’s sources, could potentially take place as early as the following year, although negotiations are ongoing, and details remain subject to change. It is important to note that no certainty surrounds NIO’s decision to proceed with this fundraising effort.
This development follows NIO’s recent announcement of a $1 billion offering of convertible senior notes. Notably, the disclosure of this offering on September 19, 2023, led to a significant one-day drop of 17.07 percent in NIO’s US-traded stock, marking its most substantial decline in four years.
In response to Bloomberg’s report, NIO’s pre-market trading experienced a dip, at one point dropping approximately 7.5 percent. As of press time, this decline had narrowed to 5.5 percent, with NIO’s shares trading at $8.06.
NIO remains a prominent player in the rapidly evolving EV industry, with its stock performance closely monitored by investors and industry analysts alike. The company’s commitment to transparency and timely communication underscores its dedication to maintaining trust and confidence in the public market.
