- Nio has expanded its new share offering and priced it at HK$29.46 per share, a 9.49 percent discount to its closing price in Hong Kong today.
- Nio expects to complete the placement around April 7, with an issuance amount of HK$4.03 billion.
Nio (NYSE: NIO) has expanded its new share offering and announced the pricing at a discount to its closing price in Hong Kong today.
The electric vehicle (EV) maker said in a new announcement that it plans to issue 136,800,000 new class A ordinary shares, an expansion from what was announced earlier today of up to 118,793,300 shares.
The issue price of these new shares has been set at HK$29.46 per share, a discount of 9.49 percent to its closing price of HK$32.55 in Hong Kong on Thursday.
The upsized issue amounts to HK$4.03 billion, according to the announcement.
Nio expects the placement to be completed around April 7, subject to the satisfaction of customary closing conditions.
Morgan Stanley Asia Limited, UBS AG Hong Kong Branch, China International Capital Corporation Hong Kong Securities Limited and Deutsche Bank AG, Hong Kong Branch have been appointed as the placing agents.
Nio currently plans to use the net proceeds from the placement for research and development of EV technologies and new products, further strengthening of the balance sheet and general corporate purposes.
Earlier today, Nio announced the financing plan, saying that it will issue up to 118,793,300 class A ordinary shares to non-US persons in offshore transactions outside the US.
Nio's vehicle deliveries have been weak in the past few months, as deliveries of the L60 SUV (sport utility vehicle), the first model from its sub-brand Onvo, have fallen short of expectations.
The company's financial position is under pressure and the risk was flagged in its fourth-quarter earnings report published on March 21.
As of December 31, 2024, Nio's current liabilities exceeded its current assets, but its financial resources are sufficient to support its operations in the next 12 months, the company said in the earnings report.
Below is Nio's statement about the pricing.
NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO) (“NIO” or the “Company”), a pioneer and a leading company in the global smart electric vehicle market, today announced the pricing of its upsized HK$4,030.13 million offering of 136,800,000 class A ordinary shares of the Company (the “Placement Shares”), at an offering price of HK$29.46 per Placement Share (the “Equity Placement”).
The Placement Shares have been offered to non-U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act of 1933, as amended (the “Securities Act”).
The Company expects to close the Equity Placement on or about April 7, 2025 (the “Closing Date”), subject to the satisfaction of customary closing conditions.
Morgan Stanley Asia Limited, UBS AG Hong Kong Branch, China International Capital Corporation Hong Kong Securities Limited and Deutsche Bank AG, Hong Kong Branch have been appointed as the placing agents.
The Company currently plans to use the net proceeds from the Equity Placement for research and development of smart electric vehicle technologies and new products, further strengthening balance sheet as well as general corporate purposes.
The Placement Shares have not been and will not be registered under the Securities Act or any state securities laws or be registered in Hong Kong or elsewhere.
They may not be offered or sold in the United States or to U.S. persons (as defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.
The Placement Shares have not be offered to any members of the “public” (within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance, Chapter 32 of the Laws of Hong Kong), or in Singapore.
This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any securities, in the United States, Hong Kong, Singapore or elsewhere, and shall not constitute an offer, solicitation or sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
This press release contains information about the pending Equity Placement, and there can be no assurance that the Equity Placement will be completed.
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