Published: Fri, August 17, 2018
Economy | By

Nio will look to raise $1.8B on NYSE

Nio will look to raise $1.8B on NYSE

But the upstart Chinese automaker faces a long road ahead for its proposed float of up to US$1.8 billion on the New York Stock Exchange.

NIO and other Chinese EV makers are raising money to develop new products and fund an expansion as the world's biggest vehicle market signals a shift to battery-powered vehicles in a bid to cut pollution and reduce dependence on imported oil. It plans to raise up to US$1.8 billion, which will be the largest listing of a Chinese auto company in the United States.

Nio's founder and chairman William Li Bin holds a 17.2 per cent stake.

NIO is backed by tech giant Tencent and several private equity firms. Ltd and Kandi Technologies Group, are listed in the U.S., Nio's IPO would dwarf their presence on the stock exchange.

As of July 31, Nio has raised more than $2.4 billion, the prospectus showed.

"In March 2018, Tesla indicated that its autopilot system was engaged at the time of a fatal accident and an Uber Technologies Inc. self-driving vehicle struck a pedestrian leading to a fatality", Nio said in the filing".

The Chinese auto maker in late June began making deliveries of its first mass-produced electric vehicle, the ES8, after unveiling the $67,000 seven-seat SUV a year ago.

Last November, the company, whose investors also include Hillhouse Capital Group and Sequoia Capital, raised more than $1 billion in its latest fundraising round, led by existing investor Tencent, valuing the firm at about $5 billion. NIO is sufficiently funded for its operations and mass-production plans, Li said earlier this year.

Other Chinese auto and electric vehicle makers that are listed in the United States include Great Wall Motor Co Ltd, which has a over-the-counter listing, and Kandi Technologies Group.

NIO first started generating revenue this year, reporting $6.7 million from vehicle sales and $7 million in total revenue. The joint underwriters include Morgan Stanley, Goldman Sachs, J.P. Morgan, Bank of America Merrill Lynch, Deutsche Bank Securities, Citigroup, Credit Suisse, UBS Investment Bank and Wolfe Capital Markets and Advisory.

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