Japan’s SoftBank Group Corp., which was in talks earlier this year to take a stake in Chinese electric-vehicle maker NIO Inc., has decided not to invest in the Shanghai-based startup’s initial public offering, according to people familiar with the matter.
SoftBank had considered buying about $200 million worth of shares in NIO’s IPO, The Wall Street Journal reported in April. It couldn’t be learned why the Japanese tech giant walked away from the potential investment. One of the people said SoftBank is actively looking at the electric-vehicle sector but hasn’t decided which company to back.
NIO, which has billed itself as an emerging competitor to Tesla Inc., is going public on the New York Stock Exchange. The company earlier this week launched a stock sale that could raise up to $1.32 billion. It plans to sell 160 million American depositary receipts at a price range of $6.25 to $8.25, which would value the car maker at up to $8.5 billion ahead of its trading debut.
If an option to sell 15% more stock is exercised, NIO’s IPO could raise as much as $1.52 billion. The offering is scheduled to price on Sep. 11 and the shares should begin trading the next day.
NIO was incorporated in 2014 by Bin Li, a Chinese entrepreneur, and this year started selling its first electric cars. The company isn’t profitable yet. Its shareholders include entities affiliated with Chinese internet giant Tencent Holdings Ltd. and China-focused investment firm Hillhouse Capital Group.
The company is one of several electric-vehicle makers raising funds as the sector’s growth surges. Xiaopeng Motors, a Chinese electric-vehicle manufacturer backed by Alibaba Group Holding Ltd. , said earlier this month it had raised 4 billion yuan ($586.4 million) from private investors, valuing the company at nearly 25 billion yuan. The company is planning to raise more private capital in the next six months, said a person familiar with the matter.
Another Chinese company, Singulato Motors, said it raised 3 billion yuan earlier this year.
SoftBank is Alibaba’s largest shareholder, with a roughly 30% stake in the Chinese e-commerce giant. The two companies’ founders sit on each other’s boards.
SoftBank has been collecting stakes in companies with driverless car technologies. Through its nearly $100 billion Vision Fund, SoftBank has invested in General Motors Co.’s driverless car unit GM Cruise Holdings and autonomous vehicle startups Nauto Inc., Mapbox Inc. and Improbable.
SoftBank also owns stakes in Uber Technologies Inc., China’s Didi Chuxing Technology Co. and other ride-hailing companies, which amass data on when people travel and why—something SoftBank’s billionaire founder Masayoshi Son said will become more valuable with the arrival of self-driving cars.
Source: The Wall Street Journal
SoftBank had considered buying about $200 million worth of shares in NIO’s IPO, The Wall Street Journal reported in April. It couldn’t be learned why the Japanese tech giant walked away from the potential investment. One of the people said SoftBank is actively looking at the electric-vehicle sector but hasn’t decided which company to back.
NIO, which has billed itself as an emerging competitor to Tesla Inc., is going public on the New York Stock Exchange. The company earlier this week launched a stock sale that could raise up to $1.32 billion. It plans to sell 160 million American depositary receipts at a price range of $6.25 to $8.25, which would value the car maker at up to $8.5 billion ahead of its trading debut.
If an option to sell 15% more stock is exercised, NIO’s IPO could raise as much as $1.52 billion. The offering is scheduled to price on Sep. 11 and the shares should begin trading the next day.
NIO was incorporated in 2014 by Bin Li, a Chinese entrepreneur, and this year started selling its first electric cars. The company isn’t profitable yet. Its shareholders include entities affiliated with Chinese internet giant Tencent Holdings Ltd. and China-focused investment firm Hillhouse Capital Group.
The company is one of several electric-vehicle makers raising funds as the sector’s growth surges. Xiaopeng Motors, a Chinese electric-vehicle manufacturer backed by Alibaba Group Holding Ltd. , said earlier this month it had raised 4 billion yuan ($586.4 million) from private investors, valuing the company at nearly 25 billion yuan. The company is planning to raise more private capital in the next six months, said a person familiar with the matter.
Another Chinese company, Singulato Motors, said it raised 3 billion yuan earlier this year.
SoftBank is Alibaba’s largest shareholder, with a roughly 30% stake in the Chinese e-commerce giant. The two companies’ founders sit on each other’s boards.
SoftBank has been collecting stakes in companies with driverless car technologies. Through its nearly $100 billion Vision Fund, SoftBank has invested in General Motors Co.’s driverless car unit GM Cruise Holdings and autonomous vehicle startups Nauto Inc., Mapbox Inc. and Improbable.
SoftBank also owns stakes in Uber Technologies Inc., China’s Didi Chuxing Technology Co. and other ride-hailing companies, which amass data on when people travel and why—something SoftBank’s billionaire founder Masayoshi Son said will become more valuable with the arrival of self-driving cars.
Source: The Wall Street Journal
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