Shares of Nio Inc. took another dive Monday, after the China-based electric vehicle maker’s share offering, which was upsized by 13%, priced at a discount.
The company raised $2.65 billion as its offering of 68 million American depositary shares (ADS) priced at $39.00 per ADS, which is 7.1% below Friday’s closing price of $41.98.
When Nio originally announced the share offering after last Thursday’s closing bell, it said it was offering at least 60 million ADS.
Nio’s stock NIO, -7.16% slumped 5.6% in premarket trading, after shedding 7.2% on Friday in the wake of the share offering.
The stock’s selloff bucked the strength in rival EV makers and the broader stock market. Shares of Tesla Inc. TSLA, -2.72% gained 1.5%, XPeng Inc. XPEV, -1.09% climbed 2.4% and Li Auto Inc. LI, -3.48% advanced 1.4%, while futures ES00, +0.75% for the S&P 500 index SPX, -0.13% climbed 0.8%.
Nio said it has also granted the underwriters of the offering options to buy up to an additional 10.2 million ADS. That means the company could raise up to roughly another $400 million if the options are exercised.
The underwriters were Morgan Stanley and China International Capital Corp. Hong Kong Ltd.
Nio’s plan to sell shares comes after the stock rocketed 124.1% in three months through Friday, while the iShares MSCI China exchange-traded fund MCHI, -0.93% rose 7.9% and the S&P 500 gained 8.3%.