Unit of Chinese EV maker Nio gets US$471 million in fresh funding for new models
Subsidiary receives US$471 million from a consortium of investors backed by the government of Hefei in Anhui province, where Nio has two factories
The Shanghai-based company said in a statement on Sunday that it would also shell out 10 billion yuan to subscribe newly issued shares of the subsidiary, Nio China, but its holding in the unit would be reduced from 92.1 per cent to 88.3 per cent.
Following the share placement, Hefei Jianheng New Energy Automobile Investment Fund Partnership, Anhui Provincial Emerging Industry Investment and CS Capital, along with other existing shareholders of Nio China, will increase their ownership from 7.9 per cent to 11.7 per cent, Nio said.
With “an enhanced balance sheet”, Nio will be “strategically positioned” to maintain its advantages in technology, products, services and user community, promote a multi-brand strategy, succeed in broader markets, and “propel the company into the next stage of sustainable growth”, Nio, listed in both Hong Kong and New York, said in the statement.
It added that the Shanghai-based carmaker has the right to subscribe to another 20 billion yuan worth of shares in the subsidiary by the end of 2025.
The transactions are subject to regulatory and internal approvals, Nio said.
Authorities in Hefei, the provincial capital, have long been strong backers of Nio, which now operates two assemblies there.
