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Nio secures multi-billion dollar investment from Abu Dhabi fund

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Posted: Jun 20, 2023 10:42pm EST

Wang Bingyan

NIO shares rose in Hong Kong early Wednesday after the Chinese electric car maker unveiled plans to invest more than $1 billion from a fund backed by the Abu Dhabi government.

The stock rose 5.5 percent in early trade, reversing Tuesday’s 3.6 percent drop and reversing a 1.6 percent drop in the city’s benchmark index.

Wang Bingyan

NIO shares rose in Hong Kong early Wednesday after the Chinese electric car maker unveiled plans to invest more than $1 billion from a fund backed by the Abu Dhabi government.

The stock rose 5.5 percent in early trade, reversing Tuesday’s 3.6 percent drop and contrasting with a 1.6 percent drop in the city’s benchmark Hang Seng index.

Nio said Tuesday that CVYN Holdings will buy about 84.7 million newly issued Class A shares at $8.72 each, for a total of $783.5 million in cash.

Nio also said it knew the investment fund would also buy more than 40 million shares currently held by an affiliate of Chinese technology company Tencent. Based on current market prices, this would bring the total investment to over $1 billion.

The transactions will give CYVN approximately 7.0 percent of the company’s outstanding shares and the right to nominate a director to the board, Nio said.

NIO shares were last up 4.8 percent at HK$73.98.

Write to Bingyan Wang: bingyan.wang@wsj.com

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