Chinese electric-vehicle maker NIO (NIO -5.97%) says that its planned stock offering has closed and that its banks opted to buy extra shares over and above the original amount planned.
NIO's offering of 68 million new American depositary shares was completed on Wednesday at a price of $39 per share, raising about $2.65 billion before fees. In addition, the company said, the banks underwriting its offering -- Morgan Stanley and China International Capital Corporation -- have opted to purchase an additional 10.2 million shares at the same price; that sale will close sometime today.
Once that add-on offering is completed, NIO will have raised about $3 billion.
With this stock sale, NIO joined a growing list of publicly traded electric-vehicle companies that are taking advantage of high investor interest and lofty valuations to raise additional cash. NIO follows Tesla, which raised $5 billion last week; Li Auto, which raised about $1.4 billion earlier this month; and XPeng, which raised about $2.45 billion in an offering that closed last week.
NIO said last week that it plans to use the proceeds of this offering to develop new vehicles, to fund its continuing research and development of autonomous-vehicle technologies, and to expand its sales and service network.
CEO William Bin Li said last month that the company plans to introduce two new sedans in 2021.