Tencent-backed Chinese EV maker Nio targets to raise $1.32b in IPO

A NIO Eve autonomous concept electric car. Photographer: Qilai Shen/Bloomberg

Chinese electric vehicle start-up Nio Inc [NIO.N], backed by Chinese tech heavyweight Tencent Holdings Ltd , on Tuesday said it expects to raise up to $1.32 billion in its initial public offering.

Nio expects its offering of 160 million shares to be priced between $6.25 and $8.25 per share, the company said in a filing. At the higher end of the range, the company will have a valuation of about $8.46 billion.

The IPO comes as the firm, like other Chinese EV makers, seeks fresh investments capital to develop new products and finance in areas such as autonomous driving and battery technologies.

Nio, formerly known as NextEV, is betting on the benefits of local production to compete with firms such as Tesla Inc.

In June, Nio began deliveries of its ES8 pure-electric, seven-seat sport-utility vehicle, which the company sees as a rival to Tesla’s Model X. It also plans to launch a second, lower-priced electric sport-utility vehicle, the ES6, by the end of this year.

Several EV makers like WM Motor Technology Co and Xpeng Motor have also raised funds from heavyweight investors including tech giants Alibaba Group Holding Ltd, Baidu Inc and Tencent.

China has been promoting EVs since 2009 and aims to become a dominant global producer as it bids to curb vehicle emissions, boost energy security and promote high-tech industries.

Morgan Stanley, Goldman Sachs (Asia) L.L.C. and J.P. Morgan are some of the lead underwriters for the public offer.

Reuters

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.