HONG KONG/SHANGHAI (Reuters) – Chinese electrical automobile start-up NIO on Monday filed for a $1.eight billion preliminary public providing of its American depositary shares, the biggest U.S. listing by a Chinese automaker.
FILE PHOTO: Visitors examine NIO ES8 displayed throughout a media preview of the Auto China 2018 motor present in Beijing, China April 25, 2018. REUTERS/Damir Sagolj/File Photo
The firm, backed by Chinese tech heavyweight Tencent Holdings Ltd, utilized for a float of up to $1.eight billion, in accordance to its submitting with the Securities and Exchange Commission.
It plans to go public on the New York Stock Exchange underneath the image “NIO”.
The float comes because the agency, based by Chinese entrepreneur William Li in 2014, and different Chinese EV makers search recent capital to develop new merchandise and finance investments in areas together with autonomous driving and battery applied sciences.
Having begun selling EVs in 2009, China goals to turn into a dominant world producer because it bids to curb automobile emissions, enhance vitality safety and promote high-tech industries.
Start-up electrical carmakers equivalent to WM Motor Technology Co and Xpeng Motor have additionally raised funds totaling billions of from heavyweight traders together with tech giants Alibaba Group Holdings Ltd, Baidu Inc and Tencent.
NIO can also be becoming a member of a number of sizable Chinese listings in New York this yr, whilst Sino-U.S. commerce tensions involving tit-for-tat tariffs rattle world inventory markets.
At $1.eight billion, NIO’s IPO would additionally surpass the $1.63 billion float by on-line group discounter Pinduoduo Inc to turn into the second-biggest U.S. listing by a Chinese agency this yr. Chinese video streaming service supplier iQiyi Inc raised $2.42 billion from a Nasdaq IPO in March.
NIO, previously often called NextEV, is considered one of a number of largely Chinese-funded EV startups betting on the advantages of native manufacturing to compete with corporations equivalent to Tesla Inc. Its different backers embrace funding corporations Hillhouse Capital Group, Sequoia Capital and a non-public fairness fund established by Baidu.
“NIO is just getting started early,” stated Yale Zhang, head of Shanghai-based consultancy Automotive Foresight of its IPO plans. “(China’s) new energy car industry is just starting, it’s a marathon process.”
Other Chinese automotive and electrical automobile makers which might be listed in the United States embrace Great Wall Motor Co Ltd, which has a over-the-counter listing, and Kandi Technologies Group.
NIO incurred a web lack of $502.6 million in the primary six months of 2018, its assertion stated, on $6.95 million in revenues.
In June, it started buyer deliveries of its ES8 pure-electric, seven-seat sport-utility automobile, which the corporate sees as a rival to Tesla’s Model X. It additionally plans to launch a second, lower-priced electrical sport-utility automobile, the ES6, by the tip of this yr.
NIO stated it had delivered 481 ES8s as of the tip of July and had unfulfilled reservations for an additional 17,000, of which four,989 had been ordered with non-refundable deposits.
NIO primarily plans to use the proceeds to be raised for analysis and improvement of merchandise and know-how, advertising and marketing and creating manufacturing services.
The firm has employed Bank of America Merrill Lynch, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, Morgan Stanley and UBS as underwriters.
Reporting by Julie Zhu in Hong Kong and Brenda Goh in Shanghai; Additional Reporting by Yilei Sun; Editing by Simon Cameron-Moore and Sam Holmes