NIO plans to issue 69 million ADS shares to raise a maximum of US$412 million


On June 10, NIO issued an announcement saying that 60 million shares of American Depositary Shares (ADS) would be issued at an issue price of $5.97/ADS. NIO also plans to grant the underwriters an additional 30-day placement rights to purchase up to 9 million additional ADSs. If all 69 million ADSs are issued, NIO will raise a maximum of US$412 million, to prepare for the capital injection of NIO’s China headquarters.

Morgan Stanley, Credit Suisse and CICC are the joint underwriters for this ADS issue.

NIO said that its shareholder Tencent showed interest in subscribing to the ADS valued at no more than US$10 million in the offering, and the offering price was the same as the terms of other American depositary receipts to be issued in the offering. Assuming that the issue price of ADS per share is $5.97, Tencent can purchase up to 1.675 million shares of ADS, accounting for approximately 2.8% of the ADS issuance.

NIO said that the funds raising this time will be used for cash investment and other working capital needs of NIO China project. NIO China is expected to use funds for research and development, manufacturing and supply chain, operation and expansion of sales and service network, and other business support.

On April 29, NIO and its strategic investors such as Hefei Construction Investment Holdings (Group) Co., Ltd., SDIC China Merchants Investment Management Co., Ltd., Anhui High-tech Industrial Investment Co., Ltd., and Hefei Economic and Technological Development Zone reached an agreement on the project of NIO China headquarter. According to the investment agreement, the above strategic investors will invest 7 billion yuan in NIO China, and NIO will invest 4.26 billion yuan in NIO China.

NIO delivered a total of 3,436 electric vehicles in May, setting a monthly delivery record. Since March, NIO’s delivery volume has been growing for three consecutive months, and the number of deliveries in May increased by 215.5% year-on-year.

NIO once predicted in the first quarter of 2020 financial report that the total delivery in the second quarter will reach 9,500 to 10,000. At present, this target has been completed 65.9% to 69.4%, and it can be completed by delivering 2090 to 3409 vehicles in June. If the goal is achieved, NIO will create the first single-season record of breaking 10,000.