Mexican Media Brands
Report: Nio Blocked IPO Banks from Rival EV Makers
China-based electric-car developer Nio Inc. blocked the eight investment banks that handled its initial public offering from working with rival EV companies.
#economics #hybrid
Share
China-based electric-car developer Nio Inc. has blocked the eight investment banks that handled its initial public offering from working with rival EV companies, Reuters reports.
Nio’s restrictions apply to Bank of America Merrill Lynch, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, Morgan Stanley and UBS.
The clauses lock out other companies from using the banks to raise public or private funds for 12 months following Nio’s IPO last September, sources tell the news service. They say such restrictions normally run only until the transaction closes, or for a few months afterwards.
Reuters says the lengthy embargos reflect the hyper competitiveness among EV developers. It adds that the banks are especially frustrated, because Nio’s IPO raise only half the $2 billion expected. The restrictions also come as Chinese EV developers are searching for ways to find funding as the central government tightens its rules for subsidies.
RELATED CONTENT
-
Is The V8 Dead?
Tougher fuel economy standards may be the end of most V8s.
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.
-
All About the 2018 Honda Accord
The common wisdom seems to be that midsize cars have pretty much had it in the U.S. new car market.