NIO Ltd. (NYSE: NIO) entered the market relatively quietly in its initial public offering (IPO). This company is a direct competitor of Tesla in the electric vehicle market.

Overall, the company priced its 160 million American depositary shares (ADSs) at $6.26 apiece, for a total offering size of roughly $1.0 billion. Underwriters are able to purchase up to an aggregate of 24 million additional ADSs. Each ADS represents one Class A ordinary share of the company.

The underwriters for the offering are Morgan Stanley, Goldman Sachs, JPMorgan, Merrill Lynch, Pierce, Fenner & Smith, Deutsche Bank, Citigroup, Credit Suisse, UBS and Wolfe Capital Markets.

NIO is a pioneer in China’s premium electric vehicle market, founded in November 2014. NIO’s mission is to offer premium smart electric vehicles and have the best user enterprise.

The company designs, jointly manufactures and sells smart and connected premium electric vehicles, driving innovations in next-generation technologies in connectivity, autonomous driving and artificial intelligence. NIO provides users with comprehensive, convenient and innovative charging solutions and other user-centric services.

The company began deliveries of the ES8, a seven-seater high-performance electric sport utility vehicle (SUV) in China from June 2018 and plans to launch ES6, a five-seater electric SUV, in late 2018.

The company intends to use the net proceeds from this offering for research and to further develop its manufacturing facilities. The remainder will be put toward working capital and general corporate purposes.

Shares of NIO were last seen at $6.52, with a range of $5.35 to $6.93 on the day so far. As 2 p.m. Eastern, roughly 53 million shares had moved on the day.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.