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CHINA, 22 June 2023: NIO Inc, a leading Chinese electric vehicle (EV) maker, announced that it has entered into a share subscription agreement with CYVN Holdings LLC, an investment vehicle majority owned by the Abu Dhabi Government. Under the agreement, CYVN Holdings will invest USD 738.5m in cash to subscribe 84.6 million newly issued Class A ordinary shares of NIO at a per share purchase price of USD 8.72.
The investment will give CYVN Holdings a 7% stake in NIO, making it the company’s third-largest shareholder. The transaction is expected to close in early July 2023.
NIO business expansion
The investment from CYVN Holdings is a vote of confidence in NIO’s business model and future prospects. It will help the company to accelerate its growth and expansion plans, and to further develop its technological capabilities.
The investment is also a sign of the growing interest in the Chinese EV market from international investors. Abu Dhabi is one of the world’s leading oil and gas producers, but it is also investing heavily in renewable energy and other clean technologies.
The investment from CYVN Holdings is a significant milestone for NIO. It will help the company to achieve its ambitious growth goals and to become a leading global EV maker.
Quotes
“The strategic investments from CYVN Holdings demonstrate NIO’s unique values in the smart electric vehicle industry,” said William Bin Li, founder, chairman and chief executive officer of NIO. “The Investment Transaction will further strengthen our balance sheet to power our continuous endeavors in accelerating business growth, driving technological innovations and building long-term competitiveness.”
Jassem Al Zaabi, Chairman and Managing Director of CYVN Holdings, said: “Our strategic investments in NIO are driven by our appreciation of its leading brand, innovative and premium products, and proven technological capabilities in the smart electric vehicle market.”
