Nio wants to raise fresh capital by issuing shares
According to official information, Nio will offer 118.8 million shares at 29.46 Hong Kong dollars each, which promises potential proceeds of 3.5 billion Hong Kong dollars. Converted, that is 3.52 euros per share and the aforementioned potential capital inflow of 420 million euros. The issue price is about 14 per cent below the closing price of Nio shares on the Hong Kong stock exchange on 26 March.
The recent share issue is likely to be related to Nio’s current corporate finances. In the annual report for 2024, the electric carmaker outlined the growth path it has taken, but Nio is deep in the red and in 2024 it moved even further away from the profit threshold. Specifically, the net loss amounted to 22.4 billion yuan (around 2.86 billion euros, +8.1% YoY) on revenues of 65.7 billion yuan (around 8.4 billion euros, +18.2%). The company itself wrote in the report that Nio’s current liabilities exceeded its current assets as of 31 December 2024, but that it had sufficient financial resources to ensure business operations for the next twelve months.
Looking ahead to 2025, Nio also wants to focus more on increasing its profitability “by driving cost reductions through technological advancements, optimizing operational efficiency and accelerating scalable growth,” as Nio’s CFO Stanley Yu Qu is quoted in the annual report. Partnerships are also likely to be part of this strategy. For example, Nio recently signed an agreement with CATL to jointly develop battery swapping stations. CATL’s Choco-Swap technology will be used specifically in newly developed models of the Nio brand Firefly.
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