Chinese electric-vehicle maker NIO (NYSE:NIO) said that it will offer 60 million new American depositary shares, each representing one share of NIO's common stock, as it moves to raise additional funds for its operating in China.
Morgan Stanley, Credit Suisse, and China International Capital Corporation are underwriting the new offering. The underwriters will have a 30-day option to purchase up to 9 million additional American depositary shares, NIO said.
NIO will use proceeds of the offering to fund its cash investments in "NIO China", a new entity created as part of a financing deal with economic-development authorities in China's Anhui province, as well as for other corporate purposes, the company said in a series of regulatory filings.
"We expect NIO China will 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[s]," the company said in a statement.
NIO said in April that it has secured a new investment from economic development authorities based in Anhui province and in Hefei, the capital city of Anhui. The authorities will invest a total of 7 billion Chinese yuan ($992 million), in exchange for a 24.1% stake in a new corporate entity into which NIO will transfer most or all of its assets in China, as well as some cash.
NIO's American depositary shares closed at $6.68 on Tuesday.