BRIEF: Nio to raise $514 million in share placement
Electric vehicle (EV) maker Nio Inc. (9866.HK, NIO.US) announced on Friday it will place nearly 137 million shares for HK$29.46 apiece, representing a 9.49% discount to its Thursday’s closing price, and raising HK$4 billion ($514 million).
The company will use proceeds for the sale to fund R&D for its smart new energy vehicle (NEV) technologies and new products, to strengthen its balance sheet, and for general corporate purposes.
The NEV maker reported a 22.4 billion yuan ($3 billion) net loss last year, including a 7.1 billion yuan loss in the fourth quarter. Its total current liabilities of 62.3 billion yuan exceeded its current assets, while its operating cash flow turned negative last year.
Nio’s shares opened down 4% at HK$31.20 on Friday, trading 5% above the placement price.
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