'New' plans to sell shares of one billion dollars to finance its expansion in electric cars

The Chinese “NIO” business, which specializes in the electric auto industry, plans to raise about one billion dollars by offering shares to finance its expansion plans. The company, based in Shanghai, intends to sell up to 181.8 million new shares at a price of $ 42.86 Hong Kong and $ 44.46 Hong Kong per share (average US $ 5.7), according to the conditions that can be seen by “Bloomberg News”, which can raise it to one billion dollars. ‘New’ explained that the returns will be used to develop future car platforms and models, as well as the expansion of the battery replacement and delivery network, and spending on research and development. Also read: Car sales in China are declining in a government campaign to stop the company’s price war, which has not achieved profits since the founding in 2014, which has been forced to stare a long -term war and a surplus in the production capacity within the electrical car market in China. The brand is known for the battery replacement model, which allows managers to replace the battery completely exhausted with a fully charged one within minutes. But it also means that the company has to create batteries at high cost. The reduction of expenses and expansion, and the automotive industry said in June that it is aimed at reducing its expenses to research and development by 25% to help reach the draw by the fourth quarter. This is the second offer of ‘new’ company shares, after the company raised $ 4 billion in Hong Kong in March. Also read: ‘New’ for electric cars expect a project to replace batteries with ‘jelly’, the US deposit receipts on the New York Stock Exchange fell during circulation before the US market opening after the announcement, after rising 41% since mid -August. The last presentation management is “Morgan Stanley”, UBS Group AG and Deutsche Bank AG.