Nio’s ET5 stands on show on the Central China Worldwide Auto Present on Could 25, 2023, in Wuhan, China.
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BEIJING — Chinese language electrical automobile firm Nio introduced Tuesday it obtained $738.5 million in new capital from a fund owned by the Abu Dhabi authorities.
The strategic funding finally offers the fund, CYVN Holdings, a 7% stake in Nio.
The deal was priced at $8.72 a share, a launch stated. That is 6.7% beneath the place Nio’s U.S.-listed shares closed Tuesday, down by about half a %.
Nio earlier this month stated lackluster automobile deliveries was affecting money circulation, and that it was delaying capital expenditure and a few analysis and growth tasks.
The corporate stated then it had sufficient money to help its enterprise. Nio disclosed money and money equivalents of 14.76 billion yuan ($2.07 billion) as of March, beneath what it disclosed for the tip of 2021 and 2022.
Center East curiosity in China
Within the final a number of months, Center East traders have more and more seemed for alternatives in China, particularly in electrical vehicles.
China-based funds have additionally seemed to Center East capital as traders from the U.S. and different areas turned cautious on China amid regulatory uncertainty.
Nio stated it expects the take care of the Abu Dhabi fund to shut in early July, after which they plan to “pursue alternatives in Nio’s worldwide enterprise.”
The settlement additionally offers CYVN the precise to appoint a director to Nio’s board, the announcement stated.