China's Nio to raise nearly $8.1 billion through share sale, 2nd time in six months

Chinese electric vehicle maker Nio (9866) is said to have plans to raise up to nearly HK$8.1 billion through a share sale, the second time in less than six months. 

The company intends to issue 181.82 million shares at a price of between HK$42.86 and HK$44.46 for HK$7.79 billion to HK$8.08 billion, Bloomberg reported, citing a terms sheet. That represents a discount of up to 8.3 percent to the closing price of HK$46.72 on Wednesday. 

Its American depositary shares slumped by 9 percent in the pre-market trading following the news. 

In a statement, Nio said it plans to use the net proceeds to invest in the research and development of core technologies for smart electric vehicles, develop future technology platforms and vehicle models across its brands, expand its battery swapping and charging network, further strengthen its balance sheet, and for general corporate purposes.

Morgan Stanley Asia, UBS Securities, UBS Hong Kong and Deutsche Bank Hong Kong are the underwriters for the offering, the statement said. 

The company raised over HK$4 billion from a share placement in April.