| 4:02 PM EST

Report: Nio Blocked IPO Banks from Rival EV Makers

China-based electric-car developer Nio Inc. blocked the eight investment banks that handled its initial public offering from working with rival EV companies.
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China-based electric-car developer Nio Inc. has blocked the eight investment banks that handled its initial public offering from working with rival EV companies, Reuters reports.

Nio’s restrictions apply to Bank of America Merrill Lynch, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, Morgan Stanley and UBS.

The clauses lock out other companies from using the banks to raise public or private funds for 12 months following Nio’s IPO last September, sources tell the news service. They say such restrictions normally run only until the transaction closes, or for a few months afterwards.

Reuters says the lengthy embargos reflect the hyper competitiveness among EV developers. It adds that the banks are especially frustrated, because Nio’s IPO raise only half the $2 billion expected. The restrictions also come as Chinese EV developers are searching for ways to find funding as the central government tightens its rules for subsidies.

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