NIO Boosts Size of Share Sale Amid Electric-Car Stock Frenzy
China’sNIO Inc. boosted the size of its capital raising by almost 20% as investors rush stock sales by electric vehicle makers.
The U.S.-listed, Shanghai-based firmsold 88.5 million American depositary receipts at $17 apiece, according to an emailed statement Monday. It initiallyplanned to sell only 75 million shares.
Investors are showing an increased interest in clean-energy car companies. Stock in Tesla Inc. hassurged this year, making founder Elon Musk a centibillionaire with a net worth of $104 billion. Li Auto Inc., another Chinese EV maker, raised$1.1 billion in late July while XPeng Inc. had astellar debut last week.
Read more: Tesla’s Largest Investors Now Include South Korea Retail Traders
The some $1.5 billion raised in NIO’s latest offer will be partly used to increase the company’s interest in NIO China. Funds will also be spent on R&D into autonomous driving technologies as well as other general corporate purposes.
NIO’s once-shaky financial position is looking stronger. Earlier this year, it got a $1 billion investment from the city of Hefei in eastern China, where it operates a factory. The firm also reported a positive gross margin for the first time in the second quarter.
Morgan Stanley, China International Capital Corp. and BofA Securities Inc. underwrote the offering.
— With assistance by Charlie Zhu, and Chunying Zhang
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