Chinese EV maker NIO announced Thursday to additionally offer 75 million American depositary shares (ADS), each representing one Class A ordinary share.

NIO said it plans to use the net proceeds from the offering mainly to increase the share capital of and the its ownership in NIO China and to repurchase equity interests held by certain minority shareholders of NIO China.

The funds will also be used for research and development in autonomous driving technologies, global market development and general corporate purposes, it said.

NIO intends to grant the underwriters in the ADS offering a 30-day option to purchase up to an additional 11,250,000 ADSs.

NIO shares plunged 9 percent to $18.06 in after-market trading after the news.

CnEVPost Daily Newsletter