NIO Shares Fall After Announcing $2bn Stock Offering

NIO (NYSE: NIO) shares are down premarket on Wednesday after the electric vehicle firm announced that it has filed a prospectus to sell up to $2 billion of its American depositary shares.

The Offering is an at-the-market one, which will price the shares at the going market rate.

The company said it plans to use the proceeds to further strengthen its balance sheet, as well as for general corporate purposes.

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NIO’s shares closed Tuesday’s session at $40.59. However, since the offering announcement, they are down 2.32% premarket at $39.65.

Last week the Chinese EV maker reported that deliveries for August had been impacted by the ongoing chip shortage. As a result, it cut its Q3 production target.

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