Nio has raised $1.16 billion through its latest share offering, with underwriters fully exercising their over-allotment option, underscoring strong market demand for the issuance.
The company said it issued a total of 209,090,918 class A ordinary shares. This comprised 160,823,190 American Depositary Shares (ADSs) – each representing one class A ordinary share – and 20,995,000 class A ordinary shares. The underwriters also took up an additional 27,272,728 ADSs as part of the over-allotment option.
The ADSs were priced at $5.57 each, while the class A shares were offered at HK$43.36. Nio said proceeds will be used to fund research and development in core EV technologies, develop future platforms and models across its brands, expand its battery swap and charging network, and strengthen its balance sheet, alongside general corporate purposes.
Nio announced plans to issue new shares on Sept. 10 before the U.S. market opened, triggering an 8.92% drop in its shares that day. However, the stock rebounded strongly, climbing for four consecutive sessions in New York. Nio closed up 8.17% on Tuesday, extending its four-day gain to 22.7% – an unusual rally following a share sale. Analysts said the rebound reflected investor confidence that fresh capital will help stabilize Nio’s finances and support long-term growth.
Market optimism has also been buoyed by the imminent launch of Nio’s third-generation ES8 sport utility vehicle and the Onvo L90. Pre-sales for the ES8 began on Aug. 21 at a competitive price, with the official debut scheduled for Nio Day 2025 this Saturday. The company views the ES8 as a key model to strengthen its premium lineup as competition intensifies in China’s EV sector.
Nio, which has faced persistent losses and a capital-intensive push to build out its battery swap network, is relying on fresh fundraising to bolster liquidity. Its Net loss narrowed in the second quarter, while deliveries showed signs of recovery after a challenging 2024. The company is betting that upcoming product launches and continued technology investment will improve competitiveness in a crowded Chinese EV market led by Tesla, BYD, and Li Auto.
