China’s Nio Aims To Raise $1.8 Billion In IPO

China’s Nio Aims To Raise $1.8 Billion In IPO

China’s Nio Aims To Raise $1.8 Billion In IPO

The Nio ES8 on display during a media preview of the Auto China 2018 motor show in Beijing, China, April 25, 2018. The company plans to list its shares on the New York Stock Exchange under the ticker symbol NIO, and at $1.8B it would make the listing the biggest for a Chinese automaker in the United States. Founded in 2014 as NextEV, Nio wants to break into China's burgeoning electric-vehicle market with a series of premium-tier cars.

NIO is also joining several sizable Chinese listings in NY this year, even as Sino-U.S. trade tensions involving tit-for-tat tariffs rattle global stock markets. Chinese video streaming service provider iQiyi Inc raised $2.42 billion from a Nasdaq IPO in March.

NIO Inc, the electric-car maker backed by technology giant Tencent Holdings Ltd, filed for a US$1.8 billion (RM7.4 billion) initial public offering as it gears up to compete against the likes of Tesla Inc. Other investors include Baidu Capital, Shunwei Capital, a venture capital co-founded by Xiaomi founder Lei Jun, and Baillie Gifford.

Sales of so-called new-energy vehicles surged in China from 21,800 units in 2013 to 741,900 in 2017, according to Frost & Sullivan data cited by NIO. "(China's) new energy vehicle industry is just starting, it's a marathon process".

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The Chinese auto maker in late June began making deliveries of its first mass-produced electric vehicle, the ES8, after unveiling the $67,000 seven-seat SUV past year.

Other Chinese auto and electric vehicle makers that are listed in the United States include Great Wall Motor Co Ltd, which has a over-the-counter listing, and Kandi Technologies Group.

Nio said that it had delivered 481 ES8s as of July 31 and had reservations for more than 17,000 additional vehicles. The joint underwriters include Morgan Stanley, Goldman Sachs, J.P. Morgan, Bank of America Merrill Lynch, Deutsche Bank Securities, Citigroup, Credit Suisse, UBS Investment Bank and Wolfe Capital Markets and Advisory.

Nio had a net loss of $502.6 million on less than $7 million in revenue in the first half of 2018, according to the filing.

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