Nio boosts size of share sale amid electric-car stock frenzy1 min read . Updated: 01 Sep 2020, 12:39 PM IST
The some $1.5 billion raised in Nio’s latest offer will be partly used to increase the company’s interest in Nio China.
China’s Nio Inc. boosted the size of its capital raising by almost 20% as investors rush stock sales by electric vehicle makers.
The US-listed, Shanghai-based firm sold 88.5 million American depository receipts at $17 apiece, according to an emailed statement Monday. It initially planned to sell only 75 million shares.
Investors are showing an increased interest in clean-energy car companies. Stock in Tesla Inc. has surged this year, making founder Elon Musk a centibillionaire with a net worth of $104 billion. Li Auto Inc., another Chinese EV maker, raised $1.1 billion in late July while XPeng Inc. had a stellar debut last week.
The some $1.5 billion raised in Nio’s latest offer will be partly used to increase the company’s interest in Nio China. Funds will also be spent on R&D into autonomous driving technologies as well as other general corporate purposes.
Nio’s once-shaky financial position is looking stronger. Earlier this year, it got a $1 billion investment from the city of Hefei in eastern China, where it operates a factory. The firm also reported a positive gross margin for the first time in the second quarter.
Morgan Stanley, China International Capital Corp. and BofA Securities Inc. underwrote the offering.
This story has been published from a wire agency feed without modifications to the text.