Neo’s share falls into the raised stock issue prices at a discount of more than 7%

Shares of China-based electric vehicle maker rose 13% and Neo Inc. shares took another dive on Monday after being priced at a discount.

68 million U.S. Depository shares (ADS) per ADS. The company raised $ 2.65 billion to deliver at a price of 39.00, which was the final price on Friday. 7.1% over 41.98.

When Neo first announced the share offer after closing hours last Thursday, it said it would offer at least 60 million ADS.

Do not miss: Neo joins hands with Tesla and other competitors to offer more stakes in electric-vehicle companies.

Role of Neo NIO,
-7.16%
The stock market fell 5.6% in booking trading after falling 7.2% on Friday.

The selling competition of the shares gained strength in EV makers and the wider stock market. Tesla Inc. Shares TSLA,
-2.72%
1.5%, Xpeng Inc. XPV,
-1.09%
2.4% and Li Auto Inc. LI,
-3.48%
Improved 1.4%, futures ES00,
+ 0.83%
For the S&P 500 index SPX,
-0.13%
0.8% higher.

Neo said it also allowed underwriters of offer options to purchase an additional 10.2 million ADS. That means the company could raise up to about $ 400 million if the options are used.

Morgan Stanley and China International Capital Corp. Hong Kong Limited.

Neo’s plan to sell shares after shares rose 124.1% in the first three months on Friday
-0.93%
7.9% and the S&P 500 8.3%.

.Source

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