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CHINA BRIEF | EV maker Nio to raise USD 1.7 billion via new share offering

New proceeds could be used for research and development in autonomous driving technologies and global market development.

Brief_Automotive Brief_Automotive

Chinese electric vehicle maker Nio (NYSE: NIO) plans to issue 75 million American depositary shares (ADS) to raise about USD 1.5 billion, according to a filing on Thursday.

The net proceeds could amount to USD 1.7 billion if underwriters fully exercise an option to purchase 11.3 million additional ADS.

“We expect to use the net proceeds from this offering mainly to increase the share capital of and our ownership in Nio China, to repurchase equity interests held by certain minority shareholders of Nio China, and for research and development in autonomous driving technologies, global market development and general corporate purposes,” said the company in the filing.

This offering comes just two months after Nio’s 60 million ADS offering to raise USD 344.2 million, KrASIA reported in June.

This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.