Written by Cláudio Afonso | LinkedIn | X
Electric vehicle maker Nio said Sunday it has secured 3.3 billion yuan (approximately $470 million) from a group of investors for its Nio China subsidiary.
These investors will subscribe to newly issued shares of Nio China, which currently has a 92.1 percent ownership stake held by Nio.
In December 2023, Nio secured a $2.2 billion investment from CYVN Holdings, an Abu Dhabi-based investment vehicle, which increased CYVN’s ownership to 20.1 per cent of the company’s total issued and outstanding shares.
The investment followed a $738.5 million investment made by CYVN in July 2023.
The new investment comes from a group of strategic investors, including Hefei Jianheng New Energy Automobile Investment Fund Partnership, Anhui Provincial Emerging Industry Investment Co., Ltd., and CS Capital Co., Ltd.
“With an enhanced balance sheet, Nio is strategically positioned to maintain its long-term advantages in technology, products, services, and user community, promote its multi-brand strategy and penetrate broader markets, and propel the Company into the next stage of sustainable growth,” the company stated said in a statement.
Additionally, Nio itself will invest an additional RMB10 billion ($1.4 billion) into NIO China as part of the agreement.
This combined investment, referred to as the “Investment Transaction,” will result in Nio holding 88.3 percent of Nio China’s equity upon completion, with the strategic investors and other existing shareholders collectively holding the remaining 11.7 percent.
Nio will expand to the Middle East later this year. The first showroom will be located in the Galleria Al Maryah Island in Abu Dhabi and the first battery swap station next to the Yas Marina F1 Circuit.
Written by Cláudio Afonso | LinkedIn | X
