Nio Inc. shares fell successful precocious trading Tuesday, aft the Chinese electric-car institution announced plans to merchantability up to $2 cardinal successful caller U.S. shares.
Nio NIO, +0.54% filed a prospectus with the Securities and Exchange Commission to merchantability up to $2 cardinal successful American depository shares successful an at-the-market offering, which seeks to terms shares astatine the going marketplace rate. Nio shares closed Tuesday astatine $40.59, suggesting Nio could question to merchantability up to astir 50 cardinal shares depending connected pricing, and said the proceeds volition beryllium utilized for wide firm purposes and to fortify its equilibrium sheet.
Nio shares fell much than 3% successful after-hours enactment pursuing the announcement.
Nio sold 68 cardinal U.S. shares precocious past twelvemonth astatine $39 apiece to rise $2.65 billion, aft selling 88.5 cardinal shares astatine $17 apiece a fewer months prior. The earlier income were portion of an detonation successful banal offerings from established electric-car companies, specified arsenic Tesla Inc. TSLA, +2.64% and Chinese rivals Xpeng XPEV, +5.08% and Li Auto Inc. LI, +2.34%, amid a surge successful involvement successful the sector.