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Hi, I am tracking NIO. It is not of my medium term holding but I am using it to get instant noodle dividend from options. The dilution is expected as NIO is burning money, but there is speculation money in NIO. For me, I do not expect it to go much higher than 12.5 at the phase 1. The money is enough for NIO to run it for 5 quarters.
But it depends much on it' s execution.
It is interesting to see the stock price falls so much where it wash out the $1 billion loan.
https://youtu.be/Y7jN0dK2iUg
But it depends much on it' s execution.
It is interesting to see the stock price falls so much where it wash out the $1 billion loan.
https://youtu.be/Y7jN0dK2iUg
mav1ryan ( Date: 20-Sep-2023 11:31) Posted:
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Nio drops 11.6% on US$1 billion notes issuance
SHARES of mainboard-listed Nio : NIO -11.11%plummeted to a 90-day low on Wednesday (Sep 20) after it announced the pricing of a two-tranche convertible bond, from which it plans to use the US$1 billion proceeds to pare debt and strengthen its balance sheet.
The counter hit a low of US$8.75, down 11.6 per cent or US$1.15 as at 2.24 pm. The last time it closed near this level was on Jun 23, 2023.
It later recovered slightly to close at US$8.80 on Wednesday, down 11.1 per cent or US$1.10, after 316,080 shares worth US$2.8 million changed hands.
The Chinese electric vehicle (EV) maker raised US$500 million in six-year convertible notes at an interest rate of 3.875 per cent, and the same amount in seven-year notes at a 4.625 per cent interest rate.
Both notes are senior and unsecured, and have an initial conversion rate of 89.9685 American Depositary Shares (ADSs) per US$1,000 principal amount. It is equivalent to an initial conversion price of about US$11.12 per ADS, and represents an initial conversion premium of around 30 per cent above the ADS closing price of US$8.55 on Sep 19, 2023.
DBS Group Research noted in a report on the same day that the fundraising came two months after Nio raised US$738.5 million from Abu Dhabi government-backed firm CYVN Investments RSC through a share placement.
Nio&rsquo s total debts stood at 14 billion yuan (S$2.7 billion or US$2 billion) as at the end of June. This includes four billion yuan, or 28.6 per cent of the total debts, of its 2026 convertible notes, which will be due for redemption in February next year.
The total notes redeemable in 2024 thus is close to US$700 million, DBS highlighted.
Nio said that it will use part of the offering&rsquo s net proceeds to buy and cancel about US$500 million of existing convertible debt. That comprises US$256 million of Nio&rsquo s zero-coupon convertible notes due 2026, and US$244 million of the company&rsquo s 0.5 per cent convertibles due 2027. Remaining proceeds will be used to &ldquo strengthen its balance sheet position&rdquo and for general corporate purposes.
&ldquo The company has to prepare sufficient funds to support future growth, given it is still in the early stage of development,&rdquo said DBS.
The company incurred non-generally accepted accounting principles net losses of 12 billion yuan for FY2022 and of 9.6 billion yuan for the first half of 2023, which had dragged on its financial position.
While Nio could face some near-term share price pressure, DBS is expecting an improving business prospect supported by stronger vehicle sales, and keeping its &ldquo buy&rdquo call for the company.
&ldquo Monthly vehicle shipment is expected to increase from about 9,000 units in H1 2023 to 18,000 to 19,000 units in Q3, and about 30,000 units per month by Q4, supported by the ramp-up of its new models.&rdquo
The EV maker&rsquo s operating cash flow could be further strengthened by a scheduled launch of a mid-market brand Alps in H2 next year, in addition to broader participation along the EV value chain, such as the potential collaboration with Svolt on battery development.
Nio&rsquo s latest bond deal also pushed the equity-linked debt issuance market by Asian companies to the busiest since March 2022, signalling a booming appetite for the hybrid instruments, reported Bloomberg.
In a volatile economic environment with interest-rate hikes, equity-linked bonds attract investors with their lower coupons and the profit potential from a rise in underlying share prices. They also benefit companies as an alternative financing tool for conventional stock financing.
The total proceeds raised via convertible bonds by Asia&rsquo s borrowers reached US$12.8 billion, the highest since the first quarter last year.
Among the Asian companies, Nio&rsquo s offering is the biggest since South Korea&rsquo s LG Chem&rsquo s US$2 billion deal in July, according to Bloomberg.
In Nio&rsquo s US$1 billion offering, the placement agents have a 30-day option to purchase an additional US$75 million of notes for each series.
The company may call the notes for early redemption after four years in the case of the 2029 notes, and after five years for the 2030 notes. Convertible holders may put the notes back to the company for early redemption in 2027 for the six-year notes, and in 2028 for the seven-year notes.
The EV maker expects to close the notes offering and the repurchase transactions on or about Sep 22, 2023.
It cautioned that the convertible holders are expected to employ a convertible arbitrage strategy. Convertible arbitrage typically involves taking short positions on the convertible&rsquo s underlying stock.
Pity those bagholders averaging between $20 and $60 a share. No light at the end of the tunnel. But you never know how the company fortunes will turn, just look at Tesla, took them almost 2 decades to turn a profit and see where the company is now. But again, it is hard for Nio to be like Tesla as there is no longer any first mover advantage for Nio, with the market now flooded with EVs. Will swap stations be the standard to adopt in future? I seriously doubt it. Faster charging times is the way to go and other EV companies might come up with more economical ways to swap out old batteries without having to build expensive and cumbersome swap stations.
investshare ( Date: 21-Sep-2023 08:08) Posted:
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As I said before, there are companies who earn from customers. And then there are who earn from shareholders.
sinpacent ( Date: 20-Sep-2023 12:26) Posted:
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NIO is planning to offer $1 billion worth of convertible bonds divided into two tranches maturing in 2029 and 2030.
mav1ryan ( Date: 20-Sep-2023 11:31) Posted:
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Why is Nio having a Free Fall today ?? Anyone?
William Li will use every opportunity when the share price rises to raise capital by diluting shares further. He will continually do that for the next few years, generating losses year after year just to build infrastructure. By the time the infrastructure is up, charging technology will have improved across the entire ev sector, making battery swapping redundant. I think companies will find more efficient ways to swap the battery and this thousands of swap stations will eventually become white elephants and only relevant to Nio, that is if the company even survives.
New video as we are going into 19 and 20 September Federal meeting
volatility expected
https://youtu.be/1Oz-J1QOVGU
volatility expected
https://youtu.be/1Oz-J1QOVGU
My position and how I will play NIO
https://youtu.be/ycl9ua0Ccoo
What I have been doing with NIO all these while
3 weeks ago has been doing covered call options
https://youtu.be/HeuGuJvkqRw
https://youtu.be/ycl9ua0Ccoo
What I have been doing with NIO all these while
3 weeks ago has been doing covered call options
https://youtu.be/HeuGuJvkqRw
Observed Nio has been trending between 10.45 to 10.90 moving sideways - and this could be sign of investors accumulating last week and this week for a long haul.
Key dates to note 15 Sep when Nio launches the EC6 on the NT2.0 platform could see another surge in orders and preorders, learning from the ES6 launch orders record in May. Next possible catalyst is the launch of Nio's android phone on 21 Sep. This product launch would be interesting as the introduction of smartphones will improve the competitiveness of Nio cars. Driving a vehicle is expected to become more convenient and convenient with the integration of a smartphone into electric vehicle systems.
Nio's projected monthly delivery have already seen 20k deliveries in July and Aug, hoping to see further improvements going forward.
DYOD, please
Key dates to note 15 Sep when Nio launches the EC6 on the NT2.0 platform could see another surge in orders and preorders, learning from the ES6 launch orders record in May. Next possible catalyst is the launch of Nio's android phone on 21 Sep. This product launch would be interesting as the introduction of smartphones will improve the competitiveness of Nio cars. Driving a vehicle is expected to become more convenient and convenient with the integration of a smartphone into electric vehicle systems.
Nio's projected monthly delivery have already seen 20k deliveries in July and Aug, hoping to see further improvements going forward.
DYOD, please
Nio lost > RMB 6 billion in 1H23. See https://links.sgx.com/FileOpen/NIO%20Inc.%20Reports%20Unaudited%20Second%20Quarter%202023%20Financial%20Results.ashx?App=Announcement& FileID=770997 .
Nice trap!
Trade with shortsellers and DYODD
Trade with shortsellers and DYODD
TheMatrix ( Date: 29-Aug-2023 10:02) Posted:
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Buy buy buy!
Buy buy buy....
Arabs stopped pumping money into Credit Suisse when Credit Suisse stupidly confiscated Russia' s money and give it to US.
That lost of confidences created exodus of funds from Credit Suisse, eventually the downfall.
That lost of confidences created exodus of funds from Credit Suisse, eventually the downfall.
mrwonderful ( Date: 30-Jul-2023 11:08) Posted:
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Buy sell buy sell. Easy money from Nio.
Only common is Singtel?
Ftyeng ( Date: 29-Jul-2023 20:16) Posted:
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See the link in my post to find out more. As many others argue, Tesla is overpriced and its FSD is far from completion.
Anyway DYODD, i myself believe Xpeng has more potential at its current price (I have been buying it for years through its ups and downs).
Nio can also do well, but I just don' t think it will outperform anywhere as well as Xpeng.
PS: I meant to write Nio is rallying mostly because of better delivery numbers, weibo chatter says it may even hit 20K this month (not substantiated), and partly the Xpeng VW deal has also rubbed off some magic on to its performance (people believe another European company like Merc or BMW may also do a partnership with it, also very uncertain IMO because 1) those are head-on competitors with Nio and 2) they definitely do not want to pursue Nio' s battery swap model and chassis for their own cars).
Truthfully, Nio should not have gone down the battery swap model. It is really expensive - R& D, buying/leasing land, setting up and maintaining swap stations and batteries. In fact, weibo got news that some swap stations in Shanghai are even closing down. hmmm.
Anyway DYODD, i myself believe Xpeng has more potential at its current price (I have been buying it for years through its ups and downs).
Nio can also do well, but I just don' t think it will outperform anywhere as well as Xpeng.
PS: I meant to write Nio is rallying mostly because of better delivery numbers, weibo chatter says it may even hit 20K this month (not substantiated), and partly the Xpeng VW deal has also rubbed off some magic on to its performance (people believe another European company like Merc or BMW may also do a partnership with it, also very uncertain IMO because 1) those are head-on competitors with Nio and 2) they definitely do not want to pursue Nio' s battery swap model and chassis for their own cars).
Truthfully, Nio should not have gone down the battery swap model. It is really expensive - R& D, buying/leasing land, setting up and maintaining swap stations and batteries. In fact, weibo got news that some swap stations in Shanghai are even closing down. hmmm.
investshare ( Date: 30-Jul-2023 13:26) Posted:
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You make a mistake bro! Nio share price will overtake Xpeng share price soon.
mrwonderful ( Date: 30-Jul-2023 11:08) Posted:
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Tesla hype is over. USD 200 plus, u think how much it can go?
Nio is now only USD 15 plus, cheap cheap
investshare ( Date: 30-Jul-2023 13:26) Posted:
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