Chinese EV maker Nio lowers IPO target to $1.5B before U.S. listing
Date: 2018-09-14   Author: Pankaj Singh  Category: #news

Chinese EV maker Nio lowers IPO target to $1.5B before U.S. listing

China based electric vehicle manufacturer Nio has reportedly cut down the target for its NYSE listing to $1.5 billion after releasing a price range for its shares. Citing reliable sources, the company plans to sell 184 million shares between $6.25-$8.25 which would raise a total of $1.518 billion, down from the initial target of $1.8 billion.

The range is subject to change and it doesn’t include income from the green shoe option that allows underwriters to allocate additional shares, the sources mentioned. The newest filing from Nio confirms that $250 million investment into the IPO is coming from its existing investors which would account for 22 percent of the allocation.

Industry experts believe that among all the possible reasons of cutting the overall IPO target estimates, the most probable could be the sales. Nio has just begun to earn revenues after opening sales for its ES8 vehicle last year, which it began shipping only in June. By now, it has fulfilled 481 orders but claims to have 17,000 units reserved by customers waiting to purchase it.

According to company reports, Nio has recorded huge losses of $759 million in 2017 and $503 million this year till date, as it mainly focuses towards R&D and preparation. The company, purportedly, has plans to scale up and start its own manufacturing plants, so it is tough to determine its potential with only a month of revenues.

For the record, Nio, the Chinese alternative to Tesla, develops technology in Silicon Valley and has design teams in the UK and Germany, although it is focusing for sales only in world’s largest market for consumer EV sales, China. Alibaba holds the record for the world’s largest IPO on U.S. public market and the window is open for Chinese tech companies, but EVs still remain a new concept in the world of technology.



About Author


Pankaj Singh

Pankaj Singh

Pankaj Singh Develops content for Algosonline, Market Size Forecasters, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

Read More

More from Pankaj


Post Recommendents

CTS presents Intelligent Transport Management Technologies at ITS 2019
Author: Saipriya Iyer

The rapidly expanding global population is further leading to rapid urbanization, which has raised many critical issues, including road safety problems and increasing congestion on the road. The growing need for sustai...


Freshworks looks for a fresh funding round to aim at $3 Bn valuation
Author: Saipriya Iyer

As per NASSCOM, India’s software as a service (SaaS) industry is slated to grow 36 percent annually and reach $3.3-$3.4 billion by 2022. Cheaper workforce, mature sales ecosystem, abundant talent and adoption of ...


CARFIT finishes seed funding round with PlugandPlay and CIC Capital
Author: Paroma Bhattacharya

Global predictive maintenance sector is predicted to witness an exponential growth over the coming years. Seeing the immense growth opportunity, several global venture capital firms are increasingly investing in predic...