Nio’s Billion-Dollar Equity Raise Sends Shares Tumbling

Chinese electric vehicle manufacturer Nio Inc. has jolted its shareholders with a sudden and substantial capital raise. The company announced a $1 billion equity offering priced at a steep 11.3% discount to its previous closing price, triggering an immediate and sharp sell-off in its stock and forcing investors to contend with significant dilution of their holdings.

In a move that caught the market off-guard, Nio revealed plans late Wednesday to issue approximately 182 million new American Depositary Shares (ADSs). Each share was priced at $5.57, a figure that represented a substantial markdown from the stock?s closing price just a day earlier. The market?s response was swift and severe, with Nio?s share price plummeting nearly 9% as investors digested the news of the... Read more...