NIO IPO Results: $1 Billion Raised, Tesla’s Success Held Down NIO Value
NIO raised approximately $1 billion through IPO, but the automaker had hoped for more.
According to the latest reports, NIO‘s IPO ended at the bottom of the target price range per share ($6.25 to $8.25) as the company sold some $1 billion worth of shares at $6.26.
The market valuation stands now at $6.41 billion, which is far less than hoped for months ago (up to $20 billion).
Part of the reason for the more difficult capital raise is apparently Tesla – confusion around taking the company private, production ramp-up and profitability. NIO was sometimes considered as a candidate for a so-called Chinese Tesla, so it could be dragged down a little bit by Tesla’ recent successes.
On the other hand, in the first half of 2018, NIO noted revenue of just $6.95 million, at net losses of $502.6 million. By the end of August, the company delivered some 1,600 ES8 electric SUVs (with 15,778 ordered/reserved). The second volume model, the smaller ES6, is to be introduced by the end of this year.
“NIO priced its shares at $6.26, just above the low end of its $6.25 to $8.25 target price range, according to four sources familiar with the process. The deal will value the firm at $6.41 billion. It is due to begin trading on Wednesday on the New York Stock Exchange under the symbol “NIO”.”
“At the start of the IPO process, NIO had hoped for a valuation of as much as $20 billion, according to one person familiar with the company’s plans.”