Nio Is Going Public On The NYSE, Will Use Proceeds In R&D And New Facilities | Feature
In a filing with the US Securities and Exchange Commission on Tuesday, the car manufacturer said it will offer 160 million American Depositary Shares at a price range between $6.25 and $8.25.
The South China Morning Post reports that, if Nio elects to exercise its over-allotment option, the IPO fundraising could raise as much as $1.5 billion – a tad lower than the $1.8 billion that were initially expected.
The company has started promoting its IPO in Hong Kong and will move to Singapore on Friday and London next Monday to spread the word. Stops are also being planned in Boston, New York, Chicago and San Francisco.
The stock will start trading on the New York Stock Exchange on September 12.
Nio founder Li Bin currently holds a 17.2 per cent stake in the company while Chinese social media giant Tencent holds a 15.2 per cent stake.
Nio’s IPO comes despite the fact that the company only recently commenced deliveries of its first production model, the ES8 SUV. In fact, the manufacturer claims to have only delivered 1381 examples and has deposit-backed orders for a further 15,700.
The company says it will use the proceeds from the IPO on research and development of products, services and technology, marketing and developing sales channel, improving its supply chain, and building manufacturing facilities.