Nio announced on Wednesday the completion of its offering of 68 million American Depositary Shares (ADSs) at $39 per share, with each ADS representing one Class A ordinary share.

The company also allowed the underwriters to purchase up to an additional 10.2 million ADSs within 30 days.

Nio said the underwriters will exercise their option to purchase the additional 10.2 million ADSs in full. The closing of the sale of the additional ADSs is scheduled for December 17, 2020.

Morgan Stanley and China International Capital Corporation Hong Kong Securities Limited acted as representatives for the underwriters for the ADS Offering.

Nio said it plans to use the net proceeds mainly for research and development of new products and next generations of autonomous driving technologies, sales and service network expansion, and market penetration and general corporate purposes.

Before the move, Nio had raised more than RMB 32.8 billion ($5 billion) in cumulative funding this year.

In a recent interview with Chinese media, Nio explained that it has sufficient funds and resources to ensure the company's operation and development, but from the perspective of safeguarding the company's long-term competitive advantage, it will make the best choice for the company's long-term development according to the changes in the market.

Prior to the issuance, William Li, the founder of Nio, held 11.5% of the shares and had 41.3% of the voting rights. Tencent holds 11.5% of the shares and 18.4% of the voting rights, while Baillie Gifford & Co holds 6.8% of the shares and 3.5% of the voting rights.

After this ADS offering, Li's shareholding drops to 11% with 40.5% of the voting rights. Tencent holds 11%, with 18% of the voting rights, while Baillie Gifford & Co holds 6.5%, with 3.4% of the voting rights.