Nio’s stock sinks on heavy volume after upsized ADS offering prices at discount

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Shares of Nio Inc. sank 8.0% in very active premarket trading Monday, after the China-based electric vehicle maker announced the pricing of an upsized stock offering at a discount. Trading volume was 8.4 million shares, making the stock the most actively traded ahead of Monday’s open. The company said its offering of 88.5 million American depositary shares (ADS) priced at $17.00 each, which is 8.1% below Friday’s closing price of $18.50. On Friday, the stock slid 6.9% after the company announced an offering of 75 million ADS, as it looked to increase the share capital of its ownership in Nio China. The stock has soared nearly 4-fold (up 360.2%) year to date, while shares of U.S.-based rival Tesla Inc. have run up more than fivefold (up 429.1%) and the S&P 500 has tacked on 8.6%.
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