Electric car start-up NIO prepares US$2b IPO in Tesla’s home turf
NIO, which counts Chinese technology giants Tencent, Baidu and Xiaomi among its investors, eyes public listing on Nasdaq or the New York Stock Exchange at a valuation of US$15 billion
Chinese electric vehicle start-up NIO has hired investment banks for its initial public offering (IPO) by the end of this year in the United States, the home turf of Tesla, with an eye to raise US$2 billion, according to a person familiar with the matter.
That public listing would put the valuation of Shanghai-based NIO at US$15 billion, said the person, who asked not to be identified because the discussions are private.
NIO, which counts Chinese technology giants Tencent Holdings, Baidu and Xiaomi among its investors, remained undecided on whether it should list on Nasdaq or the New York Stock Exchange.
The company declined to comment on the proposed IPO.
Founded in 2014 by internet entrepreneur William Li Bin, NIO had been valued at US$5 billion after its latest round of fundraising in November, according to one of the company’s investors with knowledge of the matter.
NIO is one of a few dozen electric car start-ups that have sprouted in recent years after China’s government started handing out special manufacturing permits to companies outside the traditional car making industry. To encourage sales, the government also gave out research and development grants and consumer subsidies, and exempted new-energy vehicles from ownership quotas in its biggest cities.