Why NIO Stock Is Rising Today
What happened
(NYSE: NIO) were trading higher on Tuesday, a day after the company announced that a secondary stock offering had priced at a discount.
As of 12:45 p.m. EDT, NIO’s shares were up about 3.5% from Monday’s closing price.
So what
opened lower on Monday, after the company said that its secondary stock offering had priced at $17, $1.50 below Friday’s closing price. That suggested to investors that NIO’s bankers might have needed to sweeten the deal in order to sell the shares, but concerns might have been overblown.” data-reactid=”20″>NIO’s shares opened lower on Monday, after the company said that its secondary stock offering had priced at $17, $1.50 below Friday’s closing price. That suggested to investors that NIO’s bankers might have needed to sweeten the deal in order to sell the shares, but concerns might have been overblown.
NIO will begin deliveries of its latest model, the EC6, this month. Image source: NIO.
NIO’s plans for the proceeds of the offering — $1.5 billion, roughly — are a little complicated. ” data-reactid=”33″>It seems more likely that the banks’ investors hesitated because NIO’s plans for the proceeds of the offering — $1.5 billion, roughly — are a little complicated.
24.1% stake in its Chinese assets. ” data-reactid=”34″>Here’s the simplified version. Earlier this year, when NIO was nearly out of cash, it made a deal to raise about $1 billion from economic-development authorities in its home province in China, in exchange for a 24.1% stake in its Chinese assets.
NIO and the investors created a subsidiary to hold those assets. NIO owns 75.9% of that subsidiary (which it refers to as “NIO China”); the investors hold the rest.
Now what
auto investors taking a longer-term view on the company. But it looked complicated at first glance. That’s probably why the stock was down yesterday, and why it’s rising today, now that investors have had time to read and digest NIO’s plan. ” data-reactid=”39″>That seems clearly bullish for auto investors taking a longer-term view on the company. But it looked complicated at first glance. That’s probably why the stock was down yesterday, and why it’s rising today, now that investors have had time to read and digest NIO’s plan.
John Rosevear has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.” data-reactid=”48″>John Rosevear has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why NIO Stock Is Rising Today was originally published by The Motley Fool” data-reactid=”49″>Why NIO Stock Is Rising Today was originally published by The Motley Fool
