Nio’s Billion-Dollar Equity Raise Sends Stock Tumbling

Chinese electric vehicle manufacturer Nio Inc. rattled markets with the announcement of a substantial new share offering. The move, which aims to raise over one billion dollars, triggered a dramatic sell-off, sending the company’s stock price plummeting by nearly 10% to a two-week low. This represents the most significant single-day decline for Nio shares in almost two years, leaving investors to question the timing and rationale behind such a decisive capital raise.

The specifics of the offering, disclosed on September 10, involve the issuance of more than 181 million new American Depositary Shares (ADS). Each share is priced at $5.57, representing a considerable 11.3% discount to the previous day’s closing price. The sheer scale of this dilution is significant, equivalent to over eight percent... Read more...