Goldman Sachs: Expects to issue $1 billion in shares to support NIO-SW in executing product strategy
Goldman Sachs released a research report stating that NIO (09866) announced a plan to issue USD 1 billion in shares, including the issuance of American Depositary Shares and Class A ordinary shares, with an issuance price of USD 43.36 per Class A ordinary share and USD 5.57 per American Depositary Share. In the past two quarters, NIO's new models, including the Lido L90 and NIO ES8, have shown improved competitiveness. It is expected that delivery volumes in the third and fourth quarters could increase to 89,000 and 131,000 vehicles, compared to 42,000 and 72,000 vehicles in the first and second quarters. The bank also indicated that the funds raised from the issuance of USD 1 billion in shares will be used for automotive technology research and development, expanding the battery swap and charging network investments, as well as strengthening the balance sheet. It is anticipated that this large-scale equity financing will further support NIO in executing its product strategy, estimating that NIO's R&D expenditure will reach RMB 11 billion in 2025 and 2026. Through this placement, the debt ratio is expected to decrease from 98% to 92%
According to the Zhitong Finance APP, Goldman Sachs released a research report stating that NIO (09866, NIO.US) announced a plan to issue $1 billion in shares, including the issuance of American Depositary Shares and Class A common stock, with an issuance price of $43.36 per Class A common share and $5.57 per American Depositary Share. In the past two quarters, NIO's new models, including the Lido L90 and NIO ES8, have shown improved competitiveness, and it is expected that delivery volumes in the third and fourth quarters could increase to 89,000 and 131,000 vehicles, compared to 42,000 and 72,000 vehicles in the first and second quarters.
The bank also indicated that the funds raised from the issuance of $1 billion in shares will be used for automotive technology research and development, expanding battery swap and charging network investments, as well as strengthening the balance sheet. It is anticipated that this large-scale equity financing will further support NIO in executing its product strategy, estimating that NIO's R&D expenditure will reach 11 billion yuan in 2025 and 2026, and this placement could reduce the debt ratio from 98% to 92%
