On August 28, Beijing time, NiO announced its plan to issue 75 million additional American Depository shares (ads), each of which represents one class a common stock, and the total financing amount is between 1.497 billion and 1.722 billion US dollars.
According to the announcement, the funds raised this time will be mainly used to increase the shares of Weilai China, exercise the share repurchase right of Weilai China, research and development of automatic driving technology and the expansion of global market.
Weilai plans to give the Underwriters a 30 day option to buy up to 11.25 million ADSS. The underwriters are Morgan Stanley, CICC Hong Kong Securities Limited and Bank of America Securities Limited.
Affected by the news, Weilai shares fell more than 8% before the market. As of the time of publication, Weilais share price was at $18.76 per share, down 5.68%.
On April 29, Weilai announced that it had signed a final agreement with strategic investors such as Hefei Construction Investment Holding (Group) Co., Ltd. and other strategic investors on investment in Weilai China, and reached an agreement with Hefei Economic and Technological Development Zone on the settlement of the headquarters of Weilai China.
According to the investment agreement, strategic investors will invest 7 billion yuan in Weilai China. Weilai will inject its core business and related assets, including vehicle R & D, supply chain and manufacturing, sales and services, energy services and other core businesses and related assets into Weilai (Anhui) Holding Co., Ltd. (hereinafter referred to as Weilai Anhui), the legal entity of Weilai China. The above businesses and assets are valued at RMB 17.77 billion according to 85% of the average market value of Weilai in the 30 public trading days before April 21, 2020 RMB. In addition, Weilai will invest 4.26 billion yuan in China. After the completion of the transaction, Weilai will hold 75.9% of the controlling shares of Weilai China, and strategic investors will hold 24.1% of the total shares.
According to the prospectus, according to the investment agreement, Weilai has the right to increase its stake in Weilai Anhui within 2020.
In terms of increasing the research and development of automatic driving, Li Bin, the founder, chairman and CEO of Weilai automobile, said in a conference call after the second quarter financial report that the investment in automatic driving would be increased. At present, there are more than 200 people in the automatic driving team. In the next step, we will increase some investment around the next generation of autonomous driving technology. Generally speaking, we spend 500 to 600 million yuan per quarter. In some quarters, we will increase according to the progress of vehicle development.
In terms of global market expansion, Li Bin also said at the financial report meeting that he was indeed carrying out very detailed preliminary research and preparation work for overseas markets, including the preparation of products, teams and detailed plans for market entry. But what I can say is that this year is certainly not the right time for everyone to know, but we are preparing for these things.
In addition, Li Bin recently revealed in an interview with the US media CNBC that he hopes to make some preliminary attempts in some countries that prefer electric vehicles in the second half of next year, hoping to start from Europe. However, Li did not disclose the specific name of the country. He also said that preparations for Weilais plan to enter major global markets by 2023 or 2024 are in preparation.