NIO announced yesterday that the company successfully raised HKD 4.03 billion through a "lightning" placement. The placement price was HKD 29.46 per share, approximately 9.5% lower than NIO's closing price of HKD 32.55 on the same day. The company stated that the funds raised from this placement will be used to drive the development of core technologies and new products for intelligent electric vehicles, while further enhancing NIO's cash reserves, optimizing the company's balance sheet, and providing sufficient resources to support NIO's long-term business growth.

Since March, companies like BYD, Xiaomi Group, and NIO have successively announced "lightning" placement plans, demonstrating the trend of Chinese tech and electric vehicle companies rapidly raising funds through the capital markets. These companies are all in a stage of rapid expansion, and through placements, they can quickly raise the necessary funds to support their business development. The funds raised from the placement will strengthen the company's cash reserves, optimize its capital structure, and improve financial stability. Additionally, by seizing market opportunities to attract investors, these companies can swiftly raise the funds they need without affecting existing shareholders and enhance market liquidity.

NIO's placement not only helped the company raise funds but also improved its liquidity in the Hong Kong stock market. However, it also brought some potential negative effects. The placement will dilute the stakes of existing shareholders, which could be a disadvantage, especially for long-term investors. Moreover, the placement price usually carries a certain discount, which may put pressure on the stock price in the short term, leading to the risk of stock price volatility in the future.

How to purchase NIO on uSMART

First, log into the uSMART HK app and tap the 'Search' option in the top-right corner of the page. Enter the stock code, such as '09866.HK,' to access the detail page where you can view trading details and historical trends. Next, tap the 'Trade' button in the bottom-right corner and select the 'Buy/Sell' option. Finally, fill in your trading conditions and submit the order.

(Image source: uSMART HK)