We aim to procure up to 1.5 billion dollars – News

We aim to procure up to 1.5 billion dollars – News

The IPO window in the United States may open widely to Chinese high-tech enterprises, but Nio, an electric car maker, prudently lowered the listing target to 1.5 billion dollars after announcing the price range for that action.

The company intends to sell 184 million shares between $ 6.25 and $ 8.25. In this range, the total increase of 1,518 million dollars will be increased from the initial target of 1.8 billion dollars originally submitted in August. Of course, this range is subject to change and does not include revenues from the "Green Shows" option, which subscribers can allocate additional shares, but it is still an important development.

Nio also revealed in the new record that existing investors are committed to investing $ 250 million in IPO. It occupies 22% at the center of the range.

There are many explanations that Nio may have reduced the overall estimate of funding.

The most basic ones are related to sales. The company is just beginning to make money. Last year, she started selling ES8 cars, but did not start selling until June. So we only ordered 481 orders so far, but we insist that 17,000 customers are waiting for you to reserve a model and purchase.

This means that we have recorded a substantial loss of $ 759 million of 2021 and $ 533 million this year. It is because the momentum of R & D and preparation has increased. Even if Nio intends, it is difficult to evaluate this possibility only with one-month sales.

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We aim to procure up to 1.5 billion dollars - News

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