Shares of NIO Inc. (NYSE: NIO) surged to the highest trading price in more than a year after the company announced it completed an offering of American depositary shares to raise $428.4 million.
The Shanghai-based electric vehicle maker said in a statement Monday after the markets closed that it has offered 72 million shares at $5.95 each. The underwriters have a 30-day option to purchase an additional 10.8 million shares, which would then raise $492.66 million. The offering is up from NIO’s announcement last week, which would have raised under $400 million.
The firms are Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, and China International Capital Corp. Hong Kong Securities Ltd.
After being hit hard with the coronavirus outbreak in the first quarter, NIO has been looking to secure new capital. It will use the proceeds from the offering to fund cash investments in NIO China and other capital needs.
“The Company expects NIO China to use the cash investments for research and development of products, services and technology, development of our manufacturing facilities and roll-out of our supply chain, operation and development of our sales and service network and general business support purpose,” NIO said in a statement today.
In the first quarter, NIO posted $193.8 million in revenues on losses of $238.9 million. As of March, it had cash and cash equivalents, restricted cash, and short-term investments of $338.6 million.
The good news is NIO looks poised for a strong second quarter, as NIO reported earlier this month that it delivered 3,436 vehicles in May, up 216% year-over-year. NIO has said that it expects to deliver in the range of 9,500 and 10,000 vehicles in the second quarter, which would represent an increase of approximately between 167% to 182% compared with the same period in 2019.
Although NIO soared to its highest to trading price since March 2019, the stock fell nearly 4 cents lower from Monday’s close to $6.78 per share by midday.
No doubt NIO will be a stock to watch going forward as the company will hope to deliver on its guidance.