Nio, a Chinese electric automaker backed by Tencent Holdings, filed for an initial public offering (IPO) on Monday 13th August 2018. The company aims to raise as much as USD$1.3 billion. The filing to the Securities and Exchange commission state that they launched their first volume-manufactured electric vehicle, the ES8, in December 2017 and began making deliveries to users on June 2018.

The ES8 is a 7-seater all aluminum alloy body, premium electric SUV equipped with NIO’s proprietary electric powertrain system, which can accelerate from zero to 100 km per hour in 4.4 seconds and delivers up to 500 km driving range in a single charge. Nio intends to launch a second volume-manufactured electric vehicle, the ES6, a 5-seater high-performance EV by the end of 2018 and start deliveries in the first half of 2019.

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NIO ES8 EV (Image from http://www.nio.io/es8)

The filing also affirms their commitment in Formula E as an essential part of their branding strategy, along with other successful branding activities such as their annual NIO Day. Budget for marketing and promotional expenses (which primarily consist of marketing and advertising costs, sponsorship fees and racing costs related to their Formula E team) rose from RMB 240m in 2016 to RMB 524m in 2017.

Link 1 and Link 2 – interviews with Padmasree Warrior, (CEO, NIO U.S.) who describes the company as a “global start-up”.

“Comp” IPOs

A summary of how two other electric motorsport related companies have fared since their recent IPO is provided below. Share Price data from http://www.google.com/finance

Energica Superbike – Energica Motor Company is an Italy-based company engaged in the auto and truck manufacturers industry. The Company’s products portfolio encompasses Energica Ego, Energica Eva and Energica Ego 45+, which are able to reach a speed of 240 km/h and are developed with Formula 1 technology and the advanced three-dimensional (3D) printing Windform materials. Energica was recently announced as the sole supplier to the new all-electric bike racing series MotoE which will support MotoGP races.

Shares went on sale 29th Jan 2016 [BIT:EMC] at 3.03Euros; reached a high of 5.40 in July 2018 and is around the  4.19Euro mark at market close on 31st August 2018.

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Schaeffler – Schaeffler is a major manufacturer of rolling element bearings for automotive, aerospace and industrial uses. The company is a major sponsor and technical partner of the Audi FormulaE team. The group successfully completed its initial public offering (IPO) on 9th of October, 2015. The first trade rate was set at 13.50 euros per share.

Shares went on sale 9th Oct 2015 [ETR:SHA] at 13.15Euros; reached a high of 16.60 soon after the IPO and is around 11.70Euro at market close on 31st August 2018.

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