Nio successfully wraps up share sale, amassing $1.16 billion funds
Nio, the Chinese electric vehicle manufacturer, announced plans to issue new shares before the US market opened on September 10. The offering included the issuance of 209,090,918 class A ordinary shares, with each American Depositary Share (ADS) representing one share of class A ordinary share. The ADSs were offered at a price of $5.57 per ADS, and the class A ordinary shares were offered at HK$43.36 per share.
The share issuance came amidst growing optimism surrounding Nio's stock. The upcoming launch of the Onvo L90 and the successful pre-sales of the third-generation ES8 SUV, which began on August 21 at a competitive price, have fueled investor confidence.
The announcement, however, caused Nio's shares to plummet 8.92 percent at the close that day. But surprisingly, Nio's shares have since risen for four consecutive trading days following the new share issuance, a rare occurrence for a company. Nio closed up 8.17 percent in US trading yesterday, bringing its cumulative gain over the past four sessions to 22.7 percent.
In premarket trading on Wednesday, Nio shares were up 3.85 percent to $7.29 at the time of this writing. This rally in Nio's shares may be due to investors' growing confidence that the share issuance will help strengthen the company's balance sheet.
Nio Day 2025 is scheduled for this Saturday, where the third-generation ES8 SUV will officially launch. The company plans to use the proceeds from the share offering for research and development, developing future technology platforms and vehicle models, expanding battery swap and charging network, strengthening balance sheet, and general corporate purposes.
Moreover, Nio Inc. was financed in September 2025 by issuing new shares worth 1 billion US dollars, with strong participation from many international investors, under the leadership and capital raising ability of Li Bin, the company's founder. Nio has received about 100,000 cancellable orders for the ES8, according to Deutsche Bank.
The underwriters fully exercised their over-allotment option, leading to the issuance of additional 27,272,728 ADSs. With these funds, Nio Inc has completed its latest share offering, raising $1.16 billion.
The launch of the Onvo L90 and the successful pre-sales of the ES8 are clear indicators of Nio's commitment to innovation and growth. The company's ability to raise significant funds through share offerings and the subsequent rise in its share price suggest a positive outlook for Nio's future.
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