By Nio, the Chinese EV maker, saw a surge in premarket trading on Monday following the announcement that it has received a $2.2 billion investment from an Abu Dhabi investor.
Investment Details
According to the terms of the deal, CYVN will invest $2.2 billion for 294 million shares at a price of $7.50 each. On Friday, Nio’s stock closed at $7.98.
Market Reaction
Nio’s U.S.-listed shares (NIO) experienced an 11% jump in premarket trade, reaching $8.82.
Previous Investment and New Deal
CYVN had previously invested $738.5 million in Nio back in July and also purchased $350 million worth of shares in Nio from Tencent (700). With the new investment, the Abu Dhabi group will hold a 20% stake in Nio and will have the right to nominate two directors.
Nio’s Outlook
William Bin Li, the founder, chairman, and CEO of Nio, expressed his optimism about the company’s future: “With the enhanced balance sheet, Nio is well prepared to sharpen brand positioning, bolster sales and service capabilities, and make long-term investments in core technologies to navigate the intensifying competitive landscape, while continually improving execution efficiency and system capabilities.”
This investment from Abu Dhabi not only provides Nio with a significant boost in financial resources but also positions the company for further growth and success in the electric vehicle market.
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