Chinese EV maker NIO boosted its additional share issuance by 18 percent as investors rush to buy stocks by electric vehicle makers including Tesla, Xpeng Motors and Li Auto.
NIO today disclosed the size and pricing of the share issuance, expanding the size of the offering to 88.5 million shares from 75 million it initially planned to sell.
These shares will be offered at $17 and are expected to raise more than $1.7 billion in total financing, making it the largest issuance in China's high-end smart electric vehicle industry.
NIO offers 75 million additional ADS shares, stock plunges 9% after market
The amount raised by NIO will primarily be used to increase its shareholding in NIO China, exercise NIO China's share repurchase rights, research and development of automated driving technology, and global market expansion.
NIO's second quarter 2020 financial results show that as of June 30, 2020, NIO's cash reserves totaled RMB 11.16 billion.
On July 10, NIO China received 10.4 billion yuan in comprehensive credit from six major banks. After the issuance, NIO's current cash reserves will exceed RMB 20 billion.
NIO shares went down by more than 5 percent in pre-market trading.
