NIO Shares Jump After Unit Secures $1.9 Billion Investment

By Amanda Lee

NIO's shares in Singapore and Hong Kong surged early Monday after a unit of the Chinese electric-vehicle maker secured a capital injection.

NIO Holding, also known as NIO China, secured an investment of 13.3 billion yuan, equivalent to US$1.9 billion, from its parent and a group of investors.

Shares of NIO were last up 17% in Hong Kong trading at 56.80 Hong Kong dollars, equivalent to US$7.31, while the Singapore-listed shares were 17% higher at US$7.25.

NIO plans to invest 10 billion yuan in NIO China, while a group of investors comprising Hefei Jianheng New Energy Automobile Investment Fund Partnership, Anhui Provincial Emerging Industry Investment and CS Capital agreed to invest 3.3 billion yuan for newly issued shares, according to a filing on Sunday.

Following the transactions, NIO's stake in NIO China will fall to 88.3% from 92.1%, the company said.

The cash injections will be made in two installments and will be completed by end of this year, NIO said.

The EV maker added that it has the right to invest an additional 20 billion yuan to subscribe for more shares in NIO China by the end of 2025, based on the same pricing and terms.

Write to Amanda Lee at amanda.lee@wsj.com

(END) Dow Jones Newswires

September 29, 2024 23:29 ET (03:29 GMT)

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