Shares of Chinese EV maker Nio fell 6 percent to $39.46 in pre-market trading after pricing its additional ADS offering at a discount of about 7 percent to Friday's close.
The company on Monday announced the pricing of the offering of 68,000,000 American depositary shares (ADSs), each representing one Class A ordinary share, at a price of $39.00 per ADS.
Nio has granted the underwriters in the offering a 30-day option to purchase up to an additional 10,200,000 ADSs.
In its announcement after the bell on Thursday, Nio said it plans to offer 60 million ADSs and intends to grant the underwriters in the ADS offering a 30-day option to purchase up to an additional 9 million ADSs.
This means Nio sold 68 million ADSs, up from the 60 million initially planned, to raise $2.65 billion. Such offerings are typically priced at a discount to entice investors.
Prior to the move, Nio had raised more than RMB 32.8 billion ($5 billion) in cumulative funding this year.
In a recent interview with Chinese media, Nio explained that it has sufficient funds and resources to ensure the company's operation and development, but from the perspective of safeguarding the company's long-term competitive advantage, it will make the best choice for the company's long-term development according to the changes in the market.
Nio shares have pulled back more than 20 percent since November 24. But it is still up more than 900 percent so far this year.
It's worth noting, Nio and State Grid EV service, a subsidiary of State Grid Corporation, on Monday reached a cooperation agreement to jointly build 100 charging stations and battery swap stations in China by 2021.
The two companies signed the "Framework Agreement on Deep Cooperation in Charging, Battery Swap and Energy Services" in Beijing, in which they agreed to integrate their respective strengths and resources to explore innovations in the vehicle and charging business models.
Under the agreement, they will strive to achieve at least 100 million kWh of clean electricity for new energy vehicle users in 2021, and promote the low carbonization of the whole life cycle of new energy vehicles.
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