NIO Inc. (NIO) said Tuesday it will offer $2 billion of its American depositary shares through an at-the-market equity offering.
Unlike an IPO, in which all shares are sold at a single price, an at-the-market offering allows a company to sell shares as needed at the then-prevailing market price.
The Shanghai-based electric vehicle maker said proceeds from the sale will be used to fortify its balance sheet and for general corporate purposes.
Shares of NIO fell in after-hours trading following the announcement. The stock lost $1.23, or 3%, to $39.36 in after-hours trading. During the regular session shares rose 0.5%.
Earlier this month, NIO shares were hit after the company cut its deliveries estimate, blaming on-going semiconductor chip shortages that have plagued much of the auto industry this year.
NIO delivered 5,880 vehicles in August, representing 48% year-over-year growth.
Last month, NIO topped analyst estimates with its latest quarterly results.
Elsewhere after hours, shares of UiPath (PATH) fell after the company reported its latest financial results.
The stock dropped $4.97, or 8%, to $57.49 in after-hours action in spite of beating analyst earnings and revenue estimates and offering positive guidance, prompting some talk of "sell-the-news" trading.
UiPath came public in April, meaning the end of the lockup period for insiders is only a few weeks away.
UiPath develops software and systems to automate a variety of tasks for its client companies.
Shares of Coupa Software (COUP) rose in after-hours trading Tuesday after the company reported better than expected results and offered positive guidance for the current quarter.
The stock gained $11.67, or 4.5%, to $275 in after-hours trading.