Chinese EV maker Nio raises over $700 million from Abu Dhabi
Nio’s ET5 will be on display at the Central International Auto Show in Wuhan, China on May 25, 2023.
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Beijing — Chinese electric car company Nio announced on Tuesday that it had received $738.5 million in new funding from a fund owned by the Abu Dhabi government.
This strategic investment will ultimately result in the fund, CYVN Holdings, acquiring a 7% stake in Nio.
The purchase price was $8.72 per share, according to the release. That was 6.7% below Nio’s U.S.-listed stock’s closing price on Tuesday, down about 0.5%.
Nio said earlier this month Car deliveries were sluggish, affecting cash flow And that’s slowing capital spending and some research and development projects.
The company said it has enough cash to support its operations. Nio disclosed 14.76 billion yuan ($2.07 billion) of cash and cash equivalents as of March, which is lower than it disclosed at the end of 2021 and 2022.
Middle East interest in China
In recent months, investors in the Middle East have increasingly looked to China, especially electric vehicles, for opportunities.
China-based funds also eyeing Middle Eastern capital Investors in the U.S. and elsewhere have become wary of China amid regulatory uncertainty.
Nio said he expects the deal with the Abu Dhabi fund to close in early July, after which he plans to “pursue opportunities in Nio’s international business.”
The agreement also gives CYVN the right to nominate members of Nio’s board of directors, according to the announcement.
Summarize this content to 100 words Nio’s ET5 will be on display at the Central International Auto Show in Wuhan, China on May 25, 2023.Getty Images | Getty Images News | Getty ImagesBeijing — Chinese electric car company Nio announced on Tuesday that it had received $738.5 million in new funding from a fund owned by the Abu Dhabi government.This strategic investment will ultimately result in the fund, CYVN Holdings, acquiring a 7% stake in Nio.The purchase price was $8.72 per share, according to the release. That was 6.7% below Nio’s U.S.-listed stock’s closing price on Tuesday, down about 0.5%.Nio said earlier this month Car deliveries were sluggish, affecting cash flow And that’s slowing capital spending and some research and development projects.The company said it has enough cash to support its operations. Nio disclosed 14.76 billion yuan ($2.07 billion) of cash and cash equivalents as of March, which is lower than it disclosed at the end of 2021 and 2022.Middle East interest in ChinaIn recent months, investors in the Middle East have increasingly looked to China, especially electric vehicles, for opportunities.China-based funds also eyeing Middle Eastern capital Investors in the U.S. and elsewhere have become wary of China amid regulatory uncertainty.Nio said he expects the deal with the Abu Dhabi fund to close in early July, after which he plans to “pursue opportunities in Nio’s international business.”The agreement also gives CYVN the right to nominate members of Nio’s board of directors, according to the announcement.Read more about electric vehicles from CNBC Pro
https://www.cnbc.com/2023/06/21/chinese-ev-maker-nio-raises-more-than-700-million-from-abu-dhabi.html Chinese EV maker Nio raises over $700 million from Abu Dhabi
