NIO aims to raise $1.32bn in first US initial public offering

The China-based company, NIO, is aiming to raise $1.32bn in its first US initial public offering (IPO) and becomes the first listing by a Chinese electric vehicle maker in the US, South Morning China reports.

At a filing to the US Securities and Exchange Commission on Tuesday (28 August), the firm, who is trying to rival global giants Tesla, is offering 160mn American Depositary Shares at a price range of $6.25 to $8.25 per ADR.

NIO, supported by multinational conglomerate company Tencent, begins its IPO roadshow in Hong Kong today (29 August) before moving onto Singapore on Friday (31 August) and London on Monday (3 September).

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It is anticipated that the IPO fundraising size could reach $1.5bn if NIO uses the over-allotment option, which is referred to as greenshoe.

Having been first established in 2014 by Li Bin, NIO unveiled its first production vehicle ES8, which is an all-electric, seven-seater SUV, in December 2017.

NIO has recently managed to generate revenue, having gained $7mn for the first six months following a loss of $759mn in 2017.

The firm anticipates that its capital expenditure will reach $1.8bn by 2021.