Chinese EV maker NIO launches $1bn US IPO

NIO Inc, a Chinese electric vehicle manufacturing startup, has floated on the US Stock Exchange with an IPO worth US$1bn.

NIO, which is the first Chinese electric vehicle company to go public in the US, put 160mn American Depository Shares (ADSs) up for sale at $6.26 each, making up a total offering of around $1bn depending on whether underwriters choose to purchase additional ADSs. The IPO brings NIO’s value as a company up to $6.41bn.

NIO designs, jointly manufactures and sells electric vehicles with a focus on innovation and next generation technologies such as smart connectivity, autonomous driving and AI.

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The company has said it intends to spend 40% of net proceeds from the IPO on research and development of products, services and technology. It will spend 25% on sales, marketing and the development of sales channels; 25% is to go toward developing manufacturing facilities and roll-out of supply chain; and the remaining 10% will be used for general corporate purposes and working capital.

The manufacturing startup states as part of its NASDAQ filing: “Our mission is to shape a joyful lifestyle by offering premium smart electric vehicles and being the best user enterprise. We are a pioneer in China’s premium electric vehicle market.”

NIO has also outlined that its primary competitive factors include pricing; innovation; performance quality; safety; service and charging options; user experience; design and styling; and manufacturing efficiency.

Currently, NIO has its global headquarters in Shanghai but also boasts offices in San Jose, Munich, London, Beijing and nine other locations. Founded in 2014, it has grown to employ over 6000 staff.