NIO a leading company in the electric vehicle market has announced that it has entered into a share subscription agreement worth $2.2 billion with CYVN an investment vehicle based in Abu Dhabi.
In July 2023 NIO received a $738.5 million strategic equity investment from CYVN. Following the completion of the December Investment Transaction, CYVN will own a 20% of the Tesla rival’s shares.
William Bin Li, founder, chairman and CEO of NIO, said:
“We are deeply inspired by CYVN’s vision to accelerate the global transition to a more sustainable future, and we appreciate its endorsement of NIO’s unique values. With the enhanced balance sheet, NIO is well prepared to sharpen brand positioning, bolster sales and service capabilities, and make long-term investment in core technologies to navigate the intensifying competitive landscape, while continually improving execution efficiency and system capabilities.”
CYVN will invest an aggregate of $2.2 billion in cash to subscribe for 294,000,000 newly issued Class A ordinary shares of the Company at a per share purchase price of $7.50.
Upon closing of the December Investment Transaction, CYVN will be entitled to nominate two directors to NIO’s board of directors.
Jassem Al Zaabi, Chairman and Managing Director of CYVN Holdings, said:
“This transaction demonstrates our confidence in NIO’s unique positioning and competitiveness in the global smart EV industry. We are excited to be a long-term strategic partner of NIO and support its efforts in product innovation, technological breakthroughs and international market expansion.”
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