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Nio stock surged in premarket trade on Monday after the Chinese EV maker said it’s received a $2.2 billion investment from an Abu Dhabi investor.
Terms call for CYVN to invest $2.2 billion for 294 million shares at $7.50 each. Nio stock closed Friday at $7.98.
Nio’s U.S.-listed shares
NIO,
jumped 11% to $8.82 in premarket trade.
CYVN in July previously invested $738.5 million in Nio, as well as bought $350 million shares in Nio from Tencent
700,
The new deal at closing will give the Abu Dhabi group a 20% stake, and will give it the right to nominate two directors.
“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,” said William Bin Li, founder, chairman and chief executive officer of Nio, in a statement.
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