NIO secures RMB3.3 billion investment from strategic investors in Shanghai
- NIO Inc. will invest a total of RMB10 billion to acquire newly issued shares in NIO China, resulting in an 88.3% controlling interest.
- The investment from strategic investors will be made in two installments, with 70% due by the end of November 2024.
- This significant investment reflects strong confidence in NIO's leadership and the future of the electric vehicle industry.
On September 29, 2024, NIO Inc., a leading player in the smart electric vehicle market, announced a significant investment of RMB3.3 billion from strategic investors into NIO China. This investment is part of a larger plan where NIO will inject a total of RMB10 billion to acquire newly issued shares, resulting in NIO holding an 88.3% controlling interest in NIO China. The strategic investors, along with existing shareholders, will retain the remaining 11.7% equity. The investment is structured to be completed in two installments, with 70% expected by the end of November 2024 and the remaining 30% by the end of December 2024. NIO also has the option to invest an additional RMB20 billion by the end of 2025 under the same terms. This move reflects the strategic investors' confidence in NIO's leadership and the growth potential of the electric vehicle industry. The transaction is subject to regulatory approvals and customary closing conditions, highlighting the complexities involved in such significant financial undertakings.