Shares of Chinese electric-vehicle maker NIO (NYSE: NIO) were trading lower on high volume on Monday morning, after the company's secondary offering priced at a discount to Friday's closing price.
As of 10 a.m. EDT, NIO's American depositary shares were trading at $17.77, down about 4% from Friday's closing price.
NIO said on Monday morning that it had sold about 20% more American depositary shares than planned, 88.5 million versus 75 million. But those shares were sold at a discount: While NIO's stock closed at $18.50 on Friday, the secondary offering was sold at just $17, a price that (at least in theory) ensured a quick profit for the buyers.
Source Fool.com