NIO Inc. surged 9% in pre-market trading, securing a new round of strategic investment from the Middle East worth $2.2 billion.
NIO-SW has reached a share subscription agreement with CYVN Holdings L.L.C. CYVN will subscribe to 294 million newly issued Class A common shares of NIO-SW at a price of $7.50 per share, with a total value of $2.2 billion. Prior to this, CYVN had made a strategic equity investment of $738.5 million in NIO-SW. After the completion of the transaction, CYVN will hold approximately 20.1% of NIO-SW's shares. NIO-SW founder Li Bin stated that NIO-SW will continue to strengthen its brand positioning, enhance sales and service capabilities, and make long-term investments in core technologies to consolidate its leading position in the automotive industry transformation. Jassem Al Zaabi, Chairman of CYVN, stated that this investment demonstrates confidence in NIO-SW's position in the global smart electric vehicle industry and will become its long-term strategic partner.
Zhitong App News, NIO-SW (09866) announced that on December 18, 2023, the company has entered into a share subscription agreement with CYVN Holdings L.L.C (CYVN Holdings) through its affiliate CYVN Investments RSC Ltd (investor or CYVN).
CYVN is an investment entity headquartered in Abu Dhabi. According to the share subscription agreement, CYVN will invest a total of USD 2.2 billion in cash to subscribe for 294 million newly issued Class A common shares of the company at a purchase price of USD 7.50 per share (December investment transaction).
As previously announced by the company, in July 2023, the company received a strategic equity investment of USD 738.5 million from CYVN. In addition, CYVN purchased several Class A common shares of the company from an affiliate of Tencent Holdings Limited for a total consideration of USD 350 million. After the completion of the December investment transaction, CYVN will beneficially own approximately 20.1% of the total issued and outstanding shares of the company.
After the completion of the December investment transaction, NIO and CYVN and its affiliates will continue to cooperate and seek strategic and technological cooperation in the international market.
"We are inspired by CYVN's vision to accelerate the global transition to a more sustainable future and appreciate CYVN's recognition of NIO's unique value. With a strengthened balance sheet, NIO is well prepared to enhance its brand positioning, improve sales and service capabilities, and make long-term investments in core technologies to cope with the increasingly competitive landscape, while continuously improving execution efficiency and system capabilities," said William Li, Founder, Chairman, and CEO of NIO. "We firmly believe that NIO will further consolidate its leading position in the transformation of the automotive industry."
"Increasing our investment in NIO aligns with our strategy to build a globally leading investment portfolio in the mobility sector," said Jassem Al Zaabi, Chairman and Managing Director of CYVN Holdings. "This investment demonstrates our confidence in NIO's unique position and competitiveness in the global smart electric vehicle industry. We are delighted to become a long-term strategic partner of NIO and support its efforts in product innovation, technological breakthroughs, and international market expansion."