Nio Inc., the Chinese electric-car maker backed by Tencent Holdings Ltd., is planning a U.S. initial public offering that would give it a valuation topping $8 billion as it gears up to take on the likes of Tesla Inc.
The company is aiming to raise as much as $1.3 billion, offering 160 million American depositary shares at $6.25 to $8.25 each, according to a regulatory filing Tuesday in the U.S. That would give the company a market capitalization of about $6.4 billion to $8.5 billion.
Nio is among Chinese electric-car companies raising money to fund aggressive product development and expansion amid the auto industry's seismic shift toward alternative-power and autonomous vehicles. China's government is also pushing to increase the use of battery-powered cars to cut pollution and reduce dependence on imported oil, spawning a clutch of startups in the nation aiming to take on Tesla and legacy carmakers.
Nio plans to use proceeds from the offering for r&d, sales and marketing, and building manufacturing facilities and the supply chain, the company said in the filing.
Shares are expected to price on Sept. 11 following a roadshow that starts Wednesday in Hong Kong, according to terms for the deal obtained by Bloomberg.