NIO Inc. (NYSE:NIO) shares tumbled 8.3% in premarket trading Wednesday after the Chinese EV manufacturer unveiled plans for a sizable equity raise.
The Shanghai-based company said it will issue roughly 182 million Class A ordinary shares, with underwriters granted a 30-day option to purchase up to 27 million additional depositary receipts.
NIO said it plans to deploy the proceeds to support research and development, expand its battery swapping and charging network, improve its balance sheet, and fund general corporate needs.
The offering is being managed by Morgan Stanley Asia Limited, UBS Securities LLC, UBS AG Hong Kong Branch, and Deutsche Bank AG Hong Kong Branch.
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