https://wccftech.com/nio-nyse-nio-bulls-should-prepare-for-a-downturn-as-the-company-is-gearing-up-for-further-dilution-by-offering-75-million-additional-shares/

NIO (NYSE:NIO), one of the more prominent Chinese EV manufacturers, has come to resemble a unidirectional stock play lately as its shares traversed an incessant upward trajectory, culminating in a year-to-date 400 percent-plus rally, based on Thursday’s closing price of $19.88. However, this bullish regime is now under threat as NIO is gearing up to offer 75 million additional shares.

As per the Form 424B5 filed by NIO with the U.S. Securities and Exchange Commission (SEC) in Thursday’s after-hours trading session, the company is looking to offer 75 million American Depository Shares (ADS) in order to raise additional funds. As a refresher, ADS are U.S. dollar-denominated equity shares of a foreign company that can be purchased on an American stock exchange. A company listing ADS on a major American stock exchange has to adhere to the U.S. GAAP along with the same stringent level of reporting as that applicable to local companies.