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U.S.-listed Electric Vehicle Startup NIO Inc. to Offer 60 Million American Depositary Shares

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【Summary】​Chinese electric vehicle startup NIO Inc. plans to issue another 60 million American depositary shares (ADSs). Each ADS represents one Class A ordinary share. The company intends to grant the underwriters in the ADS offering a 30-day option to purchase up to an additional 9 million ADSs. The company's share are listed on the NYSE under the symbol "NIO".

FutureCar Staff    Dec 11, 2020 3:00 PM PT
U.S.-listed Electric Vehicle Startup NIO Inc. to Offer 60 Million American Depositary Shares
The fully-electric NIO ES6 SUV is strong rival to Tesla vehicles in China, which is the world's biggest auto market.

Chinese electric vehicle startup NIO Inc. is emerging as a strong competitor to Tesla in China, along with its rival Xpeng Motors. Both Nio and Xpeng have turned to U.S. markets ro raise additional capital. Nio launched its U.S. IPO in Sept 2018 and Xpeng went public in August.

With the strong interest in electric vehicles and related stocks that pushed Tesla shares to record highs this year, Nio plans to issue another 60 million American depositary shares (ADSs). Each ADS represents one Class A ordinary share of the Company.

The company intends to grant the underwriters in the ADS Offering a 30-day option to purchase up to an additional 9 million ADSs.

Nio plans to use the net proceeds from the ADS offering for research and development of new products and next generations of autonomous driving technologies, expand its sales and service network, as well as general corporate purposes, the company said.

Morgan Stanley & Co. LLC and China International Capital Corporation Hong Kong Securities Limited are acting as representatives for the underwriters for the ADS Offering.

Nio is often referred to as the "Tesla of China" along with its rival Xpeng Motors. The company was founded in 2014 Chinese entrepreneur William Bin Li, who serves as CEO. In November, Forbes estimated Li's net worth to be US$8.1 billion. 

Deliveries of Nio's first fully-electric vehicle, the flagship ES8 SUV began in June 2018. The company followed that up with the smaller ES6 SUV which was unveiled in Dec 2018. 

The smaller ES6 shares the same EV architecture and underpinnings as Nio's larger ES8 SUV. However the ES6 intended to be more of a mass-market EV much like the Tesla Model 3 sedan. 

Nio is backed by Chinese internet giant Tencent Holdings. The company made headlines in 2018 when it became the first Chinese electric automaker to go public in the U.S. The company raised $1 billion in its IPO. Shares of Nio began trading on the New York Stock Exchange under the symbol "NIO" on Sept 11, 2018.

On Dec 1, Nio reported it delivered a record 5,291 vehicles during the month of November, its highest monthly sales ever. The record number of deliveries represents a 109.3% year-over-year growth. In total. Nio delivered 1,387 of its flagship ES8s SUVs, 2,386 units of the smaller ES6 SUV, the and 1,518 EC6s, which is Nio's new 5-passenger premium electric coupe/SUV.

In total, Nio delivered 36,721 vehicles through Nov 30 of this year, representing an increase of 111.1% year-over-year. Cumulative deliveries as of Nov 30 reached 68,634 vehicles. 

Tesla's recent stock market climb to become the world's most valuable automaker has also helped Nio's stock price to jump from $4.13 a share at the end of February to $50.67 on Dec 1, as investors continue to pour money into EV startups and related stocks.

However, despite the ADS offering, NIO's stock has dropped 7% to $41.98 at the close of trading on Friday. The company's market cap is roughly $57 billion, which is almost as valuable as U.S. automaker General Motors.

Nio's first electric vehicle was the limited production 1,360 horsepower EP9 electric supercar, which earned the title of the world's fastest battery-powered car at Germany's famed Nürburgring Nordschleife in 2017. 

Nio said it's in the process of accelerating its production capacity this month to accommodate the growing demand for its electric vehicles.


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