Nio said on Wednesday it has priced its $1 billion share offering at $5.57 per American depositary share (ADS), an 11 percent discount to Monday’s closing price of $6.28 in the United States. In Hong Kong dollars, the class A ordinary shares are set at HK$43.36 each.
The company expects to complete the ADS portion of the offering by Sept. 11 and the ordinary share offering around Sept. 17. Nio plans to issue up to 181.8 million class A ordinary shares, including ADSs, with underwriters granted a 30-day option to purchase up to 27.3 million additional ADSs, potentially raising an extra $150 million.
Proceeds from the offering are earmarked for research and development of EV technologies, future vehicle platforms, expansion of battery swap and charging networks, and general corporate purposes. This marks Nio’s second equity financing this year, following a $520 million offshore offering in April.
The latest fundraising comes as Nio’s stock has rallied over the past two months, though the company continues to work on strengthening its financial position.