Breaking News
LAST CHANCE for Cyber Monday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

NIO seeks to raise $1.8 billion in biggest U.S. listing by China automaker

Stock MarketsAug 14, 2018 09:04
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Visitors check NIO ES8 displayed during a media preview of the Auto China 2018 motor show in Beijing

By Julie Zhu and Brenda Goh

HONG KONG/SHANGHAI (Reuters) - Chinese electric vehicle start-up NIO on Monday filed for a $1.8 billion initial public offering of its American depositary shares, the biggest U.S. listing by a Chinese automaker.

The company, backed by Chinese tech heavyweight Tencent Holdings Ltd (HK:0700), applied for a float of up to $1.8 billion (£1.41 billion), according to its filing with the Securities and Exchange Commission.

It plans to go public on the New York Stock Exchange under the symbol "NIO".

The float comes as the firm, founded by Chinese entrepreneur William Li in 2014, and other Chinese EV makers seek fresh capital to develop new products and finance investments in areas including autonomous driving and battery technologies.

Having begun promoting EVs in 2009, China aims to become a dominant global producer as it bids to curb vehicle emissions, boost energy security and promote high-tech industries.

Start-up electric carmakers such as WM Motor Technology Co and Xpeng Motor have also raised funds totalling billions of dollars from heavyweight investors including tech giants Alibaba Group Holdings Ltd (N:BABA), Baidu Inc (O:BIDU) and Tencent.

NIO is also joining several sizable Chinese listings in New York this year, even as Sino-U.S. trade tensions involving tit-for-tat tariffs rattle global stock markets.

At $1.8 billion, NIO's IPO would also surpass the $1.63 billion float by online group discounter Pinduoduo Inc (O:PDD) to become the second-biggest U.S. listing by a Chinese firm this year. Chinese video streaming service provider iQiyi Inc (O:IQ) raised $2.42 billion from a Nasdaq IPO in March.

NIO, formerly known as NextEV, is one of several largely Chinese-funded EV startups betting on the benefits of local production to compete with firms such as Tesla Inc (O:TSLA). Its other backers include investment firms Hillhouse Capital Group, Sequoia Capital and a private equity fund established by Baidu (O:BIDU).

"NIO is just getting started early," said Yale Zhang, head of Shanghai-based consultancy Automotive Foresight of its IPO plans. "(China's) new energy car industry is just starting, it's a marathon process."

Other Chinese car and electric vehicle makers that are listed in the United States include Great Wall Motor Co Ltd, which has a over-the-counter listing (PK:GWLLY), and Kandi Technologies Group (O:KNDI).

TESLA RIVAL

NIO incurred a net loss of $502.6 million in the first six months of 2018, its statement said, on $6.95 million in revenues.

In June, it began customer deliveries of its ES8 pure-electric, seven-seat sport-utility vehicle, which the company sees as a rival to Tesla's Model X. It also plans to launch a second, lower-priced electric sport-utility vehicle, the ES6, by the end of this year.

NIO said it had delivered 481 ES8s as of the end of July and had unfulfilled reservations for another 17,000, of which 4,989 were ordered with non-refundable deposits.

NIO mainly plans to use the proceeds to be raised for research and development of products and technology, marketing and developing manufacturing facilities.

The company has hired Bank of America (NYSE:BAC) Merrill Lynch, Citigroup (NYSE:C), Credit Suisse (SIX:CSGN), Deutsche Bank (DE:DBKGn), Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), Morgan Stanley (NYSE:MS) and UBS as underwriters.

NIO seeks to raise $1.8 billion in biggest U.S. listing by China automaker
 

Related Articles

Twitter CEO Jack Dorsey to step down - source
Twitter CEO Jack Dorsey to step down - source By Reuters - Nov 29, 2021

By Greg Roumeliotis (Reuters) -Twitter Inc Chief Executive Officer Jack Dorsey will step down from his role and a successor has been lined up, a person familiar with the matter...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email