In response to reports that CYVN was no longer the largest shareholder of NIO after receiving investment from NIO, NIO CEO Li Bin responded, “They did not do enough homework. First, when I went public, I The 50 million shares transferred to the user trust have not been reduced in the equity table, which means that I have long been no longer the largest shareholder in the economic sense; secondly, because of the super voting rights, I still have the largest voting rights. There was very little change at the shareholder vote level.”
On December 18, NIO officially announced that it had signed an equity subscription agreement with CYVN Holdings, headquartered in Abu Dhabi. CYVN Holdings will invest US$2.2 billion in cash through its affiliated company CYVN to subscribe for 294 million shares of the company’s newly issued Class A ordinary shares. After the transaction is completed, CYVN will hold approximately 20.1% of the total issued shares of NIO.
Relevant statistics show that before CYVN’s latest transaction, the largest shareholders of NIO in Q3 2023 were William Li, who held 9.30% (165 million shares), Abu Dhai (Emirate of), Tencent Holdings, and Baiji Investment , BlackRock respectively occupy four of the top five shareholders. Judging from the shareholding ratio, after increasing its holdings, CYVN’s cumulative shareholding of 20.1% (418.8 million shares) indeed exceeded Li Bin’s shareholding. But as Li Bin said, this does not mean that he loses his status as a major shareholder of NIO. Through voting rights and other means, Li Bin still has absolute control over NIO.
It is worth mentioning that this is also the second time CYVN has invested in NIO this year. In July this year, CYVN invested money to become a shareholder of NIO, completing a strategic investment of approximately US$1.1 billion in NIO through the private issuance of new shares and the transfer of old shares. In less than half a year, CYVN has further increased its investment, and Nio will also enter the UAE market and put it on the agenda next year. In addition, in September and October this year, Nio also successfully issued convertible senior bonds totaling US$1.15 billion. The financial report shows that as of the end of the third quarter, NIO’s cash reserves were 45.2 billion RMB. From this point of view, Nio has prepared enough food and grass to participate in the fierce competition next year. Affected by this news, NIO surged 4.7% as of the close of US stocks.
It is worth noting that on December 23, NIO will hold NIO Day at the Xi’an Olympic Sports Center. The theme of NIO Day 2023 is “Up”. In addition, an executive flagship sedan, Nio ET9, will be released on the day of the event. At present, we don’t know the specific news about the new car, but judging from the positioning and price of the Nio ET7, the new car will undoubtedly be a product that integrates many black technologies. Li Bin said that this car is the crystallization of NIO’s technological innovation and will become the technical benchmark for global smart electric vehicles and lead the development trend of smart electric vehicle technology. We will continue to pay attention to more news about new cars.
