Chinese electric vehicle (EV) manufacturer Nio recently announced a fresh injection of funds from Abu Dhabi government fund CYVN Holdings LLC, amounting to $2.2 billion. This investment is set to bring notable changes to Nio's shareholding structure, with CYVN Holdings becoming a major shareholder holding about 20.1% of Nio's total issued shares.
The funding deal involves CYVN Holdings subscribing for 294 million newly issued class A ordinary shares of Nio at a price of $7.50 per share. The transaction is expected to conclude by the last week of December. While the latest investment significantly impacts Nio's shareholding, founder and CEO William Li will retain control through a special voting arrangement.
After this deal, CYVN Holdings will hold approximately 419 million shares, entitling it to about 20.1% ownership and the right to nominate two directors to Nio's board. Despite this substantial ownership, Li will continue as the de facto controller with his special voting rights.
As of February 28, 2023, Li held 30,467,776 shares of Nio's class A ordinary shares and 148,500,000 shares of class C ordinary shares, combining for a total ownership of 10.5%. His super voting rights secure him the largest share of voting rights at 44.2%. Tencent and Baillie Gifford & Co were previously among the significant institutional shareholders in Nio.
Nio's board of directors comprises seven members, including founders William Li and Qin Lihong, Tencent's senior executive vice president James Gordon Mitchell, and four independent directors, with Long Yu and Wen Yonggang being the latest appointments.