Chinese Tesla competitor Nio sinks after more substantial-than-expected share sale (NIO)

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Shares of Nio slumped as much as 8% in premarket investing Monday following the Chinese electric powered automobile organization declared a larger secondary giving than envisioned. 

Nio, which competes with automakers such as Tesla and Nikola, introduced Monday that it offered 88.5 million American depository shares for $17 a piece, boosting roughly $1.5 billion. 

The business plans to use the proceeds from the giving “to maximize the share funds of and the Company’s ownership in NIO China, to repurchase equity interests held by specific minority shareholders of NIO China, and for study and enhancement in autonomous driving technologies, global market advancement and normal corporate purposes,” it reported in a statement.&#13

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The secondary providing was bigger than envisioned. Last 7 days, Nio declared that it supposed to market 75 million ADSs in the providing. The boosted presenting will come amid a world-wide frenzy for electrical car companies — this yr, Tesla shares have skyrocketed. 

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Nio has surged as a lot as 360% calendar year-to-date by means of Friday’s near.

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