Chinese electric car maker NIO files for U.S. IPO
NIO, a Chinese electric car maker, is seeking to raise up to $1.3 billion from a U.S. initial public offering that would give it a valuation as high as $8.5 billion, according to an SEC filing.
Why it matters: NIO, formerly known as NextEV, competes with Tesla — not to mention the scores of electric vehicle companies in China — and is hoping to go public before it has turned a profit. NIO began delivering its first cars earlier this summer and is planning a second model next year.
The deal's terms:
- The company will list its shares on the New York Stock Exchange under the symbol "NIO."
- NIO is offering 160 million American depositary shares that it will price between $6.25 and $8.25 each, giving it a market cap between $6.4 billion and $8.5 billion.
- The company is not profitable yet. It had a net loss of $503 million in the first half of 2018 on $7 million in revenue.
- After the IPO, NIO founder and CEO Bin Li will own 14.5% of shares and 48.3% of the voting power. Tencent will have 21.5% of the voting power.