Chinese electric vehicle manufacturer Nio has completed an equity placement of 136.8 million class A ordinary shares, raising approximately HK$4.03 billion ($520 million) in offshore transactions to non-U.S. persons, the company said.
The share sale, priced at HK$29.46 per share, represents a 9.49 percent discount to Nio’s closing price of HK$32.55 on the Hong Kong Stock Exchange on March 27, when the offering was first announced. The placement was executed with the support of Morgan Stanley, UBS, China International Capital Corporation, and Deutsche Bank as placing agents.
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Initially, Nio proposed issuing up to 118.8 million shares, but later expanded the offering to 136.8 million shares within the same day. The company stated that proceeds from the placement will be allocated to research and development of electric vehicle technologies and products, as well as to reinforce its balance sheet and support general corporate purposes.
The share offering took place during a period of increased market volatility, following the announcement of new tariff measures by U.S. President Donald Trump. Shares of EV companies trading in Hong Kong came under pressure, and Nio experienced a sharp decline.
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On the day of the announcement, its Hong Kong-listed shares fell by 14.78 percent to HK$24.50 — one of its steepest one-day drops. In U.S. premarket trading, Nio’s American depositary shares (ADS) declined 4.62 percent to $3.30.
The company had expected the placement to close around April 7, subject to customary conditions, according to its initial March 27 filing.