• Nio has completed its latest share offering, with underwriters fully exercising their over-allotment option, raising $1.16 billion.
• Nio's shares have risen for four consecutive trading days, a rare occurrence for a company to see its stock surge following a new share issuance.

Nio Inc (NYSE: NIO) has completed its latest share offering, with underwriters fully exercising their over-allotment option, signaling strong Wall Street confidence in the issuance.

The electric vehicle (EV) maker announced today that it issued a total of 209,090,918 class A ordinary shares in its latest offering, raising $1.16 billion.

This included the issuance of 160,823,190 American Depositary Shares (ADSs), each representing one share of class A ordinary share, and the issuance of 20,995,000 class A ordinary shares.

The underwriters fully exercised their over-allotment option, leading to the issuance of 27,272,728 ADSs.

The ADSs were offered at a price of $5.57 per ADS, and the class A ordinary shares were offered at a price of HK$43.36 per share.

Nio plans to use the proceeds to invest in R&D for EV core technologies, develop future technology platforms and vehicle models across its brands, expand its battery swap and charging network, further strengthen its balance sheet, and for general corporate purposes.

Nio announced plans to issue new shares for financing before the US market opened on September 10, causing its shares to plummet 8.92 percent at the close that day.

However, Nio subsequently rose for four consecutive trading days in the US -- a rare occurrence for a company to see its shares surge after a new share offering.

Nio closed up 8.17 percent in US trading yesterday, bringing its cumulative gain over the past four sessions to 22.7 percent.

In premarket trading on Wednesday, Nio shares were up 3.85 percent to $7.29 at the time of this writing.

This rally may stem from investors' growing confidence that the share issuance will help Nio strengthen its balance sheet, thereby ensuring stable operations moving forward.

At the same time, optimism surrounding the upcoming launch of the third-generation Nio ES8 SUV (sport utility vehicle) and the Onvo L90 has also contributed to the stock's rebound.

Nio will officially launch the ES8 at Nio Day 2025 this Saturday. The SUV began pre-sales on August 21 at a competitive price.