• The pricing represents an 11 percent discount to Nio ADS's closing price of $6.28 on the previous trading day.
• Nio will raise $1 billion in the offering. If the underwriters exercise their option, it will raise an additional $150 million.

Nio Inc (NYSE: NIO) announced today that its $1 billion share offering has been priced at $5.57 per American depositary share (ADS), representing an 11 percent discount to the previous trading day's closing price of $6.28 in the US.

In Hong Kong dollar terms, the offering price for its class A ordinary shares equates to HK$43.36 per share.

The company expects to complete the ADS offering around September 11 and the ordinary share offering around September 17.

Earlier today, Nio announced plans to issue up to 181,818,190 class A ordinary shares, including ADSs, each representing one class A ordinary share, and ordinary shares.

The allocation of shares will be determined based on investor interest between the ADS offering and the ordinary share offering.

Nio has granted the underwriters for the offering a 30-day option to purchase up to 27,272,729 additional ADSs, which, if exercised, will be settled solely in ADSs.

Based on its pricing, the offering will raise $1 billion. Should the underwriters exercise their option, an additional $150 million will be raised.

Nio plans to use the proceeds for research and development of core EV technologies, development of its brands' future technology platforms and vehicle models, expansion of its battery swap and charging network, further strengthening of its balance sheet, and general corporate purposes.

This marks Nio's second equity financing this year.

On March 27, it announced plans to issue up to 118,793,300 class A ordinary shares to non-US persons in an offshore offering outside the US.

Hours after that announcement, Nio disclosed in a subsequent filing its intention to expand the offering to 136,800,000 class A ordinary shares.

On April 7, Nio announced the completion of the offering, raising HK$4.03 billion ($520 million).

The latest financing comes as Nio's stock has seen a significant surge over the past two months, while the company still needs to improve its financial position.