- Nio completed the offering of 136,800,000 class A ordinary shares at an issue price of HK$29.46 per share.
- Nio closed down 14.78 percent to HK$24.50 on the Hong Kong stock market today as the global trade war escalated.
Nio (NYSE: NIO) today announced the completion of an offering of 136,800,000 class A ordinary shares at an offering price of HK$29.46 per share, for a total offering of HK$4.03 billion ($520 million).
The placement shares have been sold in offshore transactions to non-US persons. Morgan Stanley, UBS, China International Capital Corporation and Deutsche Bank acted as the placing agents for the equity placement.
The electric vehicle (EV) maker announced on March 27 that it would issue up to 118,793,300 class A ordinary shares to non-US persons in offshore transactions outside the United States.
Hours later, Nio said in an updated announcement that it planned to issue an expanded 136,800,000 class A ordinary shares.
The issue price of those new shares was set at HK$29.46 per share, a 9.49 percent discount to its closing price of HK$32.55 in Hong Kong on March 27.
The enlarged offering amounted to HK$4.03 billion, according to the company's announcement at the time.
Nio was expecting to complete the placement around April 7, subject to customary closing conditions, the March 27 announcement said.
The company planned to use the net proceeds of the placing for research and development of EV technology and new products, to further strengthen its balance sheet and for general corporate purposes.
The share placement comes at a relatively fortunate point in time, albeit it had led to pressure on its share price.
US President Donald Trump announced new tariff measures last week, triggering a selloff in global markets, and EV shares traded in Hong Kong were hit hard.
Nio closed down 14.78 percent to HK$24.50 on the Hong Kong stock market today, one of its biggest one-day declines.
In US premarket trading on Monday, Nio ADS fell 4.62 percent to $3.30 at press time.
($1 = HK$7.7672)
More on Nio
