Home Mutual Funds Chinese EV Maker Nio Surges on $1.9 Billion Investment

Chinese EV Maker Nio Surges on $1.9 Billion Investment

by admin



Key Takeaways

  • Nio’s U.S.-listed shares surged Monday after the company announced a new $1.9 billion investment.
  • 3.3 billion Chinese yuan will come from outside investors, with another 10 billion coming from the EV maker’s parent company.
  • Nio and other Chinese companies have seen their stock prices surge since the Chinese government announced stimulus programs earlier this month.

Nio’s (NIO) U.S.-listed shares surged in early trading Monday, after the Chinese electric vehicle maker announced a new investment over the weekend.

A group of Chinese investors agreed to acquire newly issued shares of Nio China for a combined 3.3 billion Chinese yuan ($470 million), while Nio China’s parent company will invest an additional 10 billion yuan ($1.43 billion), bringing the total investment to roughly $1.9 billion.

The parent company said it also retains the right to potentially invest an additional 20 billion yuan ($2.85 billion) by the end of 2025. The investment announced Sunday will be completed in two stages, with 70% of the funds arriving by the end of November, and the remaining 30% by the end of December.

Once the investment is complete, Nio will own 88.3% of the Nio China subsidiary, compared to 92.1% previously, while the group of new investors combined with the company’s existing shareholders will own an 11.7% stake.

Nio shares jumped over 10% to $7.24 early Monday following the news. Nio and other Chinese stocks have surged in recent weeks following the announcement of stimulus funding from the Chinese government to boost China’s economy.

Source link

related posts