NIO Inc. Announces Pricing of Upsized HK$4,030 Million Offering of New Shares

Rhea-AI Summary

NIO has announced the pricing of its upsized HK$4,030.13 million offering, consisting of 136,800,000 class A ordinary shares at HK$29.46 per share. The placement is expected to close around April 7, 2025.

The shares will be offered to non-U.S. persons in offshore transactions under Regulation S. Morgan Stanley Asia, UBS AG Hong Kong, China International Capital Hong Kong Securities, and Deutsche Bank AG Hong Kong have been appointed as placing agents.

The company plans to utilize the net proceeds for research and development of smart electric vehicle technologies and new products, strengthening its balance sheet, and general corporate purposes.

Positive

• Substantial capital raise of HK$4,030.13 million strengthens financial position
• Investment in R&D for new products and technologies indicates growth focus
• Support from major global investment banks demonstrates institutional confidence

Negative

• Share dilution for existing stockholders
• Potential downward pressure on stock price due to increased share supply
• Reliance on external funding suggests possible cash flow concerns

Insights

Financial Analyst

NIO's HK$4,030 million (~$518 million USD) capital raise through an upsized share offering represents a strategic financial move with mixed implications for investors. The offering of 136.8 million class A ordinary shares at HK$29.46 per share will cause approximately 5.7% dilution based on the company's current market capitalization.

The "upsized" nature of this placement suggests stronger-than-anticipated investor demand despite the challenging environment for EV manufacturers. This indicates institutional confidence in NIO's business model and growth trajectory. The company has secured top-tier investment banks as placing agents, including Morgan Stanley, UBS, CICC, and Deutsche Bank, providing further credibility to this offering.

NIO's stated use of proceeds reveals a two-pronged strategy: investing in future growth through R&D while simultaneously strengthening the balance sheet. This dual approach addresses both long-term competitive positioning and near-term financial stability concerns. For a capital-intensive business like electric vehicle manufacturing, maintaining sufficient liquidity is crucial for navigating industry challenges.

While dilution is never welcomed by existing shareholders, this capital injection provides NIO with necessary resources to continue its technology development and product expansion. The targeted placement to non-U.S. investors may also reflect NIO's strategy to diversify its investor base and strengthen its positioning in Asian markets.

SHANGHAI, March 27, 2025 (GLOBE NEWSWIRE) -- NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO) (“NIO” or the “Company”), a pioneer and a leading company in the global smart electric vehicle market, today announced the pricing of its upsized HK$4,030.13 million offering of 136,800,000 class A ordinary shares of the Company (the “Placement Shares”), at an offering price of HK$29.46 per Placement Share (the “Equity Placement”). The Placement Shares have been offered to non-U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The Company expects to close the Equity Placement on or about April 7, 2025 (the “Closing Date”), subject to the satisfaction of customary closing conditions.

Morgan Stanley Asia Limited, UBS AG Hong Kong Branch, China International Capital Corporation Hong Kong Securities Limited and Deutsche Bank AG, Hong Kong Branch have been appointed as the placing agents.

The Company currently plans to use the net proceeds from the Equity Placement for research and development of smart electric vehicle technologies and new products, further strengthening balance sheet as well as general corporate purposes.

The Placement Shares have not been and will not be registered under the Securities Act or any state securities laws or be registered in Hong Kong or elsewhere. They may not be offered or sold in the United States or to U.S. persons (as defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Placement Shares have not be offered to any members of the “public” (within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance, Chapter 32 of the Laws of Hong Kong), or in Singapore.

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any securities, in the United States, Hong Kong, Singapore or elsewhere, and shall not constitute an offer, solicitation or sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

This press release contains information about the pending Equity Placement, and there can be no assurance that the Equity Placement will be completed.

About NIO Inc.

NIO Inc. is a pioneer and a leading company in the global smart electric vehicle market. Founded in November 2014, NIO aspires to shape a sustainable and brighter future with the mission of “Blue Sky Coming”. NIO envisions itself as a user enterprise where innovative technology meets experience excellence. NIO designs, develops, manufactures and sells smart electric vehicles, driving innovations in next-generation core technologies. NIO distinguishes itself through continuous technological breakthroughs and innovations, exceptional products and services, and a community for shared growth. NIO provides premium smart electric vehicles under the NIO brand, family-oriented smart electric vehicles through the ONVO brand, and small smart high-end electric cars with the FIREFLY brand.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. NIO may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in announcements, circulars or other publications made on the websites of each of The Stock Exchange of Hong Kong Limited (the “SEHK”) and the Singapore Exchange Securities Trading Limited (the “SGX-ST”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about NIO’s beliefs, plans, expectations, the proposed offering, intended use of proceeds and expected closing date, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: NIO’s strategies; NIO’s future business development, financial condition and results of operations; NIO’s ability to develop and manufacture vehicles of sufficient quality and appeal to customers on schedule and on a large scale; its ability to ensure and expand manufacturing capacities including establishing and maintaining partnerships with third parties; its ability to provide convenient and comprehensive power solutions to its customers; the viability, growth potential and prospects of the battery swapping, BaaS, and NIO Assisted and Intelligent Driving and its subscription services; its ability to improve the technologies or develop alternative technologies in meeting evolving market demand and industry development; NIO’s ability to satisfy the mandated safety standards relating to motor vehicles; its ability to secure supply of raw materials or other components used in its vehicles; its ability to secure sufficient reservations and sales of its vehicles; its ability to control costs associated with its operations; its ability to build its current and future brands; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in NIO’s filings with the SEC and the announcements and filings on the websites of each of the SEHK and SGX-ST. All information provided in this press release is as of the date of this press release, and NIO does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For more information, please visit: http://ir.nio.com

Investor Relations
ir@nio.com

Media Relations
global.press@nio.com

FAQ

How much money is NIO raising in its latest share offering?

NIO is raising HK$4,030.13 million through an offering of 136,800,000 class A ordinary shares priced at HK$29.46 per share.

When will NIO's 2025 equity placement close?

The equity placement is expected to close on or about April 7, 2025, subject to customary closing conditions.

What will NIO use the proceeds from the 2025 share offering for?

NIO will use the proceeds for R&D of smart EV technologies and new products, strengthening its balance sheet, and general corporate purposes.

Which investment banks are managing NIO's 2025 Hong Kong share placement?

Morgan Stanley Asia, UBS AG Hong Kong, China International Capital Hong Kong Securities, and Deutsche Bank AG Hong Kong are the placing agents.

Can U.S. investors participate in NIO's 2025 Hong Kong share offering?

No, the shares are only offered to non-U.S. persons in offshore transactions under Regulation S of the Securities Act.