We recently published 10 Stocks Melt Down in Hours. NIO Inc. (NYSE:NIO) is one of the worst performers on Wednesday.
Shares of NIO Inc. fell by 8.92 percent on Wednesday to end at $5.72 apiece as investors unloaded positions following plans to raise $1 billion through an equity offering that could result in potential share dilution.
In a statement, NIO Inc. (NYSE:NIO) said it would issue more than 181.8 million Class A shares, from the offer of American depositary shares (ADS) in the US and ordinary shares in Hong Kong.
Photo by Obi Onyeador on Unsplash
The ADSs are priced at $5.57 apiece, while the ordinary shares are offered at HK$43.36 apiece.
NIO Inc. (NYSE:NIO) said it expects to close the offering of ADS today, September 11, and the ordinary shares in Hong Kong on September 17, 2025.
In relation to the offer, NIO Inc. (NYSE:NIO) granted its underwriters a 30-day option to purchase up to 27.27 million ADS.
The company said proceeds from the offer will be allocated for investments in the research and development of core technologies for smart electric vehicles, developing future technology platforms and vehicle models across its brands, expanding its battery swapping and charging network, further strengthening its balance sheet, alongside other general corporate purposes.
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Disclosure: None. This article is originally published at Insider Monkey.