Update: Added the full text of Nio‘s statement.
Nio released a statement formally responding to the report, saying it has no reportable capital-raising activity at this time other than the convertible note offering that closed today.
(Image credit: CnEVPost)
Nio (NYSE: NIO) denied plans for new fundraising after a report sparked widespread discussion.
“The information is false,” a spokesperson for the electric vehicle (EV) maker said in a brief response sent to CnEVPost, without providing further details.
Nio later released a statement formally responding to the report, saying it has no reportable capital-raising activity at this time other than the convertible note offering that closed today.
Below is Nio’s full statement:
NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO) (âNIOâ or the âCompanyâ) is a pioneer and a leading company in the premium smart electric vehicle market.
The Company has been made aware of certain media speculations claiming that the Company is considering raising certain capital from investors, which have been widely circulated today.
In light of the unusual market activity in the Companyâs American depositary shares today, the Company would like to clarify that the Company currently has no reportable capital raising activity, other than the recent convertible notes offering that was completed on September 25, 2023.
The Company is committed to maintaining transparent and timely communication with the public market, and will promptly announce any material information in accordance with applicable laws, listing rules, and best corporate practices.
Bloomberg earlier today cited people familiar with the matter as saying Nio is considering raising about $3 billion and has approached investors from the Middle East.
The fundraising could take place as early as next year, a person familiar with the matter said, according to the report.
Negotiations are ongoing, details are subject to change, and there’s no certainty Nio will proceed with the fundraising, Bloomberg’s report said.
It’s worth noting that earlier today, Nio announced that it closed a $1 billion offering of convertible senior notes.
After the EV maker announced plans for that note offering on September 19, its US-traded stock closed the day down 17.07 percent, its biggest one-day drop in four years.
Nio plunged in pre-market trading in the US stock market after Bloomberg’s report today, at one point falling about 7.5 percent.
At press time, Nio’s decline in pre-market trading was narrowed to 5.5 percent at $8.06.