NIO Inc. (NIO) – Get NIO Inc. Sponsored ADR Class A Report said Tuesday it will offer $2 billion of its American depositary shares through an at-the-market equity offering.
Unlike an IPO, in which all shares are sold at a single price, an at-the-market offering allows a company to sell shares as needed at the then-prevailing market price.
The Shanghai-based electric vehicle maker said proceeds from the sale will be used to fortify its balance sheet and for general corporate purposes.
Shares of NIO fell in after-hours trading following the announcement. The stock lost $1.23, or 3%, to $39.36 in after-hours trading. During the regular session shares rose 0.5%.
Earlier this month, NIO shares were hit after the company cut its deliveries estimate, blaming on-going semiconductor chip shortages that have plagued much of the auto industry this year.
NIO delivered 5,880 vehicles in August, representing 48% year-over-year growth.
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Last month, NIO topped analyst estimates with its latest quarterly results.
Elsewhere after hours, shares of UiPath (PATH) – Get UIPATH INC Report fell after the company reported its latest financial results.
The stock dropped $4.97, or 8%, to $57.49 in after-hours action in spite of beating analyst earnings and revenue estimates and offering positive guidance, prompting some talk of “sell-the-news” trading.
UiPath came public in April, meaning the end of the lockup period for insiders is only a few weeks away.
UiPath develops software and systems to automate a variety of tasks for its client companies.
Shares of Coupa Software (COUP) – Get Coupa Software, Inc. Report rose in after-hours trading Tuesday after the company reported better than expected results and offered positive guidance for the current quarter.
The stock gained $11.67, or 4.5%, to $275 in after-hours trading.