Nio Inc (NYSE:NIO) shares were trading down Monday after the Chinese electric vehicle manufacturer priced its upsized equity offering at a discount.
Nio said it has priced its offering of 68 million ADSs, each representing one Class A ordinary share of the company, at $39, a 7.1% discount to the $41.98 price at which it closed Friday.
The size of the offering represents an upward revision from the 60 million shares initially it planned to sell.
At the offering price, the company is expected to raise about $2.653 billion in gross proceeds.
This does not account for the incremental 10.2 million shares the company has set aside for covering over-allotment, if any.
The offering, Nio's third of the year, is likely to come in handy for the company to pursue technological advancement, improve customer service and enter new markets.
Nio is reportedly close to commencing expansion into Europe. Nio Germany officials recently met with the commercial counsellor of the Chinese Embassy in Germany, through video Dec. 9 to discuss the company's expansion plans.
The Company plans to use the net proceeds from the ADS Offering mainly for (i) research and development of new products and next generations of autonomous driving technologies, (ii) sales and service network expansion and market penetration and (iii) general corporate purposes.
NIO designs, jointly manufactures, and sells smart premium electric vehicles, driving innovations in next-generation technologies in connectivity, autonomous driving, and artificial intelligence
Meantime, Nio began Monday down $1.70, or 4.1%, to $40.28.
Tech Insider
