NIO Quietly Shifts Into the US in IPO

By Chris Lange Updated Jan 11, 6:02PM EST · Published Sep 12, 2:05PM EDT

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NIO Quietly Shifts Into the US in IPO — © designer491 / iStock

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.

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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.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.