Job Search Tips: Chinese Tesla rival Nio sinks after larger-than-expected share sale (NIO)

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Nio revealed on Monday that it offered 88.5 million American depository shares for $17 a piece.
Shares of Nio plunged 8%in premarket trading Monday.
The Chinese electrical automobile company, which competes with Tesla, initially prepared to offer 75 million shares in a secondary offering
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Shares of Nio plunged as much as 8%in premarket trading Monday after the Chinese electrical lorry business announced a bigger secondary offering than expected.

Nio, which takes on automakers such as Tesla and Nikola, revealed Monday that it sold 88.5 million American depository shares for $17 a piece, raising approximately $1.5 billion.

The company plans to utilize the earnings from the offering “to increase the share capital of and the Company’s ownership in NIO China, to redeem equity interests held by specific minority investors of NIO China, and for research study and development in self-governing driving innovations, international market development and general corporate purposes,” it stated in a statement

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The secondary offering was larger than anticipated. Recently, Nio announced that it meant to sell 75 million ADSs in the offering. The enhanced offering comes amid a global craze for electric lorry business– this year, Tesla shares have actually increased.

Nio has actually risen as much as 360%year-to-date through Friday’s close

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