Nio’s ET5 stands on exhibit at the Central China Worldwide Auto Display on May well 25, 2023, in Wuhan, China.
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BEIJING — Chinese electric automobile company Nio introduced Tuesday it obtained $738.5 million in new money from a fund owned by the Abu Dhabi government.
The strategic investment decision finally offers the fund, CYVN Holdings, a 7% stake in Nio.
The offer was priced at $8.72 a share, a launch explained. Which is 6.7% below in which Nio’s U.S.-shown shares closed Tuesday, down by about fifty percent a p.c.
Nio earlier this thirty day period stated lackluster motor vehicle deliveries was impacting dollars move, and that it was delaying capital expenditure and some analysis and development jobs.
The company mentioned then it had plenty of cash to aid its business enterprise. Nio disclosed hard cash and income equivalents of 14.76 billion yuan ($2.07 billion) as of March, underneath what it disclosed for the conclusion of 2021 and 2022.
Center East curiosity in China
In the past a number of months, Center East traders have more and more looked for possibilities in China, specifically in electric powered cars and trucks.
China-dependent funds have also seemed to Center East cash as traders from the U.S. and other locations turned careful on China amid regulatory uncertainty.
Nio stated it expects the offer with the Abu Dhabi fund to shut in early July, just after which they system to “pursue opportunities in Nio’s global business.”
The agreement also provides CYVN the right to nominate a director to Nio’s board, the announcement stated.
