Written by Cláudio Afonso | LinkedIn | X
Nio announced in late March that it planned to raise HK$4.03 billion ($518 million) by placing 136.8 million Class A ordinary shares at a price of HK$29.46 each.
Although the company did not name any specific investors, founder and CEO William Li said at the time that “many long-term investors” took part in the fundraising adding that the “overall market response was very good.”
At the time of the announcement, the EV maker said it expected the transaction to close “on or about April 7,” pending customary closing conditions. However, on March 29, William Li said the deal had been “completed in one day.”
The company announced on Monday the completion of the share offering. “The Placement Shares have been sold to non-U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act of 1933, as amended (the “Securities Act”),” Nio said in a statement.
Proceeds will be used to fund research and development of smart electric vehicle technologies and new products, as well as to strengthen the balance sheet and support general corporate purposes, Nio said.
Morgan Stanley, UBS, CICC, and Deutsche Bank served as placing agents for the equity placement.
“This Hong Kong placement was completed in one day, with many of Nio’s long-term investors continuing to invest. The overall market response was very good,” Li said in the media round table held on March 29.
At the time of writing, Nio shares are down 7%, amid a global market selloff that began last week due to growing fears of a global recession.
Earlier on Monday, Reuters reported that CATL, the world’s largest battery maker, is in talks to acquire a controlling stake in Nio’s Power unit.
Macquarie analyst Eugene Hsiao said the equity raise was unsurprising following Nio’s widening losses in the fourth quarter of 2024. In a research note, he pointed to a liquidity imbalance, citing current liabilities of 62.3 billion yuan, exceeding current assets of 61.8 billion yuan as of year-end.
