Nio Inc. shares fell in late trading Tuesday, after the Chinese electric-car company announced plans to sell up to $2 billion in fresh U.S. shares.
filed a prospectus with the Securities and Exchange Commission to sell up to $2 billion in American depository shares in an at-the-market offering, which seeks to price shares at the going market rate. Nio shares closed Tuesday at $40.59, suggesting Nio could seek to sell up to roughly 50 million shares depending on pricing, and said the proceeds will be used for general corporate purposes and to strengthen its balance sheet.
Nio shares fell more than 3% in after-hours action following the announcement.
Nio sold 68 million U.S. shares late last year at $39 apiece to raise $2.65 billion, after selling 88.5 million shares at $17 apiece a few months prior. The earlier sales were part of an explosion in stock offerings from established electric-car companies, such as Tesla Inc.
and Chinese rivals Xpeng
and Li Auto Inc.
amid a surge in interest in the sector.