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Chinese electric vehicle startup company NIO hires eight renowned banks for around $2 Billion U.S. IPO

Chinese-electric-vehicle-startup-company-NIO-hires-eight-renowned-banks-for-around-2-Billion-U.S.-IPO

Chinese global start-up company NIO, which specializes in designing and developing high-performance, premium electric and autonomous vehicles has hired eight international banks for planning U.S stock market listing.

The multinational banks recruited are Morgan Stanley, Goldman Sachs,  Bank of America Merrill Lynch, Credit Suisse, Citigroup, Deutsche Bank, JPMorgan and UBS.

This strategic deal made by Chinese internet entrepreneur William Li, would prove to be beneficial in seeking fresh capital to finance its expansion and investments in areas, including autonomous driving and battery technologies. Since promotions of electric cars in 2009, China wishes to become a giant global producer as it proposes to reduce vehicle emissions, boost energy security and promote high-tech industries.

It is estimated that the NIO’s IPO would become the biggest Chinese listing in America since the $25 billion public float of e-commerce giant Alibaba Group Holding Ltd in 2014. In October 2016, it was reported that Chinese logistics company ZTO Express raised $1.41 billion from an IPO in New York.

Even though, a decline was observed in China’s auto market in 2017, there was a boon in the production of  new electric vehicles. An industry body commented that previous month’s sales would reach up to 40 percent this year, topping 1 million vehicles. Chinese ministry of finance has also extended its support in the form of tax rebate on purchases of NEVs until the end of 2020, a boost for hybrid and electric car makers.

The automotive sector from China is currently targeting new energy vehicle sectors  in the world’s biggest auto market by investing billions of dollars.