Chinese EV maker Nio raises more than $700 million from Abu Dhabi

Beijing – China Electric Vehicle Company Nioh It announced on Tuesday that it secured $738.5 million in new capital from a fund owned by the Abu Dhabi government.

The strategic investment culminated in fund CYVN Holdings taking a 7% stake in NIO.

The deal is priced at $8.72 per share, a release said. That was 6.7 percent below Nio’s U.S.-listed stock’s closing price on Tuesday, down about 0.5 percent.

Nio said earlier this month that a slump in vehicle deliveries is affecting cash flow and delaying capital spending and some research and development projects.

The company said at the time that it had enough cash to support its business. NIO disclosed cash and cash equivalents of 14.76 billion yuan ($2.07 billion) as of March, down from the levels it disclosed at the end of 2021 and 2022.

Over the past few months, Middle Eastern investors have increasingly looked to China for opportunities, especially in electric vehicles.

Chinese funds are also eyeing Middle Eastern capital as investors in the U.S. and elsewhere are wary of China amid regulatory uncertainty.

The agreement also gives CYVN the right to nominate directors to NIO’s board of directors, the announcement said.