Chinese EV maker NIO plans initial public offering as it takes on Tesla
The electric-vehicle maker hopes to raise as much as $1.3bn in the offering, which is being arranged by nine US lenders
Tokyo — NIO, the Chinese electric-vehicle (EV) maker backed by Tencent Holdings, of which JSE-listed Naspers owns 31%, is planning a US initial public offering (IPO) that would give it a valuation topping $8bn as it gears up to take on the likes of Tesla. The company is aiming to raise as much as $1.3bn, offering 160-million American depositary shares (ADS) at $6.25 to $8.25 each, according to a regulatory filing in the US on Tuesday. This would give the company a market capitalisation of between $6.4bn and $8.5bn. NIO is among Chinese EV companies raising money to fund aggressive product development and expansion amid the automotive industry’s seismic shift toward alternative-power and autonomous vehicles. China’s government is also pushing to increase the use of battery-powered cars to cut pollution and reduce dependence on imported oil, spawning a clutch of start-ups in the nation aiming to take on Tesla and legacy car makers. NIO plans to use proceeds from the IPO for research a...
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