Nio shares fall after company announces offering of 75 million shares

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U.S.-listed shares of Nio Inc. , a Chinese manufacturer of autonomous vehicles, are off more than 4% in Friday trading after the company announced an offering of 75 million American depositary shares. The company’s announcement, which came late Thursday, said that Nio would grant the underwriters of this offering a 30-day option to purchase up to 11.25 million additional American depositary shares. Nio intends to use the proceeds from the offering ” mainly to increase the share capital of and the company’s ownership in Nio China,” as well as to repurchase equity interests held by some minority shareholders of the Nio China business and conduct research research into autonomous-driving technology. Nio’s shares have rallied nearly 400% in the past three months as the S&P 500 has added 15%.
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