Written by Cláudio Afonso | LinkedIn | X
The Chinese conglomerate, Tencent Holdings, submitted a form to the Securities and Exchange Commission (SEC) on Thursday, revealing the sale of 28,454,077 shares of Nio. As a result, Tencent now holds 95,657,938 shares in the company. This marks a 22.93 percent decrease from their previous filing in June 2023.
Following the sale, Tencent now holds a 4.9 percent stake in the EV manufacturer. Over the past four years, the firm has gradually reduced its stake in Nio from 16.30 percent to 4.90 percent, selling approximately 64 million shares.
Nio shares closed at $5.26 per share on Thursday, 46 percent higher than its recent lows of $3.61 and 92 percent lower than its all-time high reached in January 2021.
“Tencent is the parent company of Image Frame and Huang River and may be deemed to beneficially own the securities held of record by Image Frame and Huang River. Tencent’s beneficial ownership also includes 146,578 Class A Ordinary Shares represented by 146,578 ADSs held of record by a wholly-owned subsidiary of Tencent. Tencent’s beneficial ownership represents 4.9% of the total issued and outstanding Class A Ordinary Shares,” the firm stated in the filing.
Tencent is recognized as one of the world’s top venture capital and investment entities and it currently holds significant stakes in tech firms such as Meituan, JD, DiDi, Snap, PDD, Kuaishou, Epic Games, and others.
Meanwhile, CYVN Investments, an Abu Dhabi-based investment vehicle, currently holds nearly 419 million shares in Nio, representing slightly more than 20 percent ownership, according to Nio disclosures.
In July 2023, Nio announced a strategic equity investment of US$738.5 million from CYVN. Additionally, CYVN acquired certain Class A ordinary shares of the Company from an affiliate of Tencent Holdings Ltd. for an aggregate consideration of US$350 million.
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In December, Nio disclosed a new round of $2.2 billion investment from CYVN, emphasizing continued collaboration to pursue strategic and technology partnerships in international markets.
Tencent Holdings reached its highest ownership percentage in July 2020, at 16.30%, after acquiring approximately 16 million shares. Subsequently, in early 2021, the firm reduced its stake by selling 11 million shares as the stock reached new all-time highs, exceeding $66 per share.
| File Date | Effective Date | Form | Prev Shares | Latest Shares | Shares Diff. | Ownership | Ownership (Percent) |
|---|---|---|---|---|---|---|---|
| May 16, 24 | 2024-05-16 | 13D/A | 124,112,015 | 95,657,938 | -22.93% | 4.90% | -38.75 |
| June 23, 23 | 2023-06-23 | 13D/A | 164,249,629 | 124,112,015 | -24.44% | 8.00% | -30.25 |
| March 4, 21 | 2021-03-04 | 13D/A | 175,059,212 | 164,249,629 | -6.17% | 11.47% | -29.63 |
| July 13, 20 | 2020-07-13 | 13D/A | 159,033,571 | 175,059,212 | 10.08% | 16.30% | 7.95 |
| 2020-06-19 | 2020-06-19 | 13D | 140,575,048 | 159,033,571 | 13.13% | 15.10% | -2.58 |
| 2020-02-10 | 2020-02-10 | 13G/A | 140,434,299 | 140,575,048 | 0.10% | 15.50% | -2.52 |
| 2019-02-01 | 2019-02-01 | 13G | 0 | 140,434,299 | — | 15.90% |
Tencent Holdings started its position in early 2019 by buying about 140.4 million shares, just a few months after the delivery of Nio’s first production car, the Nio ES8.
According to Fintel, Nio has 628 institutional owners and shareholders holding a total of 349,136,141 shares. Key shareholders include BlackRock, Vanguard, Morgan Stanley, State Street Corp, Baillie Gifford & Co, and Goldman Sachs.
Institutional ownership reached an all-time high in early 2022, with nearly 600 million shares held by institutions, according to the data platform Fintel.
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In early April, Baillie Gifford submitted a filing to the SEC revealing the sale of 96,011,757 shares of the EV manufacturer.
In their previous filing on January 26, the firm had reported owning 114,924,231 shares indicating that slashed its position in the company between late January and the end of March from 114,924,231 to 18,912,474 shares — a decrease of 83.54 percent.
The firm started investing in Nio shares shortly after the IPO in late 2018. At the time, Baillie Gifford added 85,297,388 shares reaching an ownership percentage of the company of 11.44 percent.
Written by Cláudio Afonso | LinkedIn | X
