NIO has expanded its new share offering and announced the pricing at a discount to its closing price in Hong Kong on Thursday.

The electric vehicle (EV) maker said in a new announcement that it plans to issue 136,800,000 new class A ordinary shares, an expansion from what was announced earlier today of up to 118,793,300 shares.

The issue price of these new shares has been set at HK$29.46 per share, a discount of 9.49 percent to its closing price of HK$32.55 in Hong Kong on Thursday.

The upsized issue amounts to HK$4.03 billion, according to the announcement.

NIO expects the placement to be completed around April 7, subject to the satisfaction of customary closing conditions.

HK-listed shares of NIO plunged almost 8% in morning trading.

Morgan Stanley Asia Limited, UBS AG Hong Kong Branch, China International Capital Corporation Hong Kong Securities Limited and Deutsche Bank AG, Hong Kong Branch have been appointed as the placing agents.

NIO currently plans to use the net proceeds from the placement for research and development of EV technologies and new products, further strengthening of the balance sheet and general corporate purposes.

Earlier Thursday, NIO announced the financing plan, saying that it will issue up to 118,793,300 class A ordinary shares to non-US persons in offshore transactions outside the US.

NIO's vehicle deliveries have been weak in the past few months, as deliveries of the L60 SUV (sport utility vehicle), the first model from its sub-brand Onvo, have fallen short of expectations.

The company's financial position is under pressure and the risk was flagged in its fourth-quarter earnings report published on March 21.

As of December 31, 2024, NIO's current liabilities exceeded its current assets, but its financial resources are sufficient to support its operations in the next 12 months, the company said in the earnings report.