December 11, 2020 11: 45 am
Nio Ltd. (NYSE: NIO) shares dipped on Friday after the electrical vehicle (EV) manufacturer acknowledged it would possibly possibly most likely be conducting a secondary offering. Whereas COVID-19 attach a damper on many companies this year, Nio has thrived and is taking a see to capitalize all over again.
The corporate announced that it would possibly possibly most likely be offering 60 million American depositary shares, each representing one Class A typical portion of the company. There’s a 30-day overallotment risk in which underwriters would possibly possibly fair bewitch as much as an further 9 million shares.
The underwriters for the offering are Morgan Stanley and China Global Capital Company Hong Kong Securities.
The corporate plans to consume the on-line proceeds from the offering mainly for research and construction of newest products and next generations of self reliant driving technologies, as effectively as for gross sales and carrier network expansion and market penetration, and for general corporate applications.
Recent that Nio’s stock has risen about 1,025% year up to now. Over the last 52 weeks, the stock is up closer to 1,900%. The corporate has a market cap of roughly $57.8 billion.
Earlier this week, Tesla had entered into an agreement with some brokerage homes to behavior a secondary offering as effectively. Also, only three months ago, Nio performed a separate secondary offering for 88.5 million shares that were being offering for $17 apiece.
Nio stock traded down 7% on Friday to $42.12, in a 52-week fluctuate of $2.11 to $57.20. The consensus designate purpose is $37.74.
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