Chinese EV Startup Aims to Raise $1.8 Billion with U.S. IPO
Nio Ltd., a Chinese electric vehicle maker launched in 2014, aims to raise as much as $1.8 billion through a U.S. initial public stock offering, according to a regulatory filing.
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Nio Ltd., a Chinese electric vehicle maker launched in 2014, aims to raise as much as $1.8 billion through an initial public stock offering in the U.S., according to a regulatory filing.
The Shanghai-based company plans to join the New York Stock Exchange under the symbol “NIO.” Media reports say the IPO, which has been in the works since May, could be launched as early as next month.
Nio says it will use the funds to develop new products and technologies, ramp-up manufacturing capabilities and bolster its marketing and sales efforts. In addition to conventional battery charging stations, Nio is developing mobile charging systems, pickup and delivery services and a scheme that allows motorists to swap depleted batteries with a fully charged unit in about three minutes.
Nio began delivering its first model, the ES8 electric crossover vehicle, this summer in China. The company claims to have more than 17,000 reservations for the vehicle, which sells at a base price of 448,000 yuan ($69,000).
A second model, the ES6 crossover, is due in the first half of 2019. A sedan will follow in 2020.
At $1.8 billion, NIO’s IPO would be the second-largest U.S. listing by a Chinese firm this year and largest such offering ever by a Chinese carmaker.
Nio, founded by Chinese entrepreneur William Li, was known originally as NextEV. The company is backed by Chinese tech giant Tencent Holdings, a private equity fund established by Baidu and investment firms Hillhouse Capital Group and Sequoia Capital.
The company posted a net loss of more than $500 million through the first six months of 2018 on sales of nearly $7 million.
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