Nio shares rose 5% in pre-market trading on Tuesday, after report said China's largest domestic car maker, Geely Automobile, is planning to invest in it.
Geely plans to invest about $300 million, which will account for less than 10% of Nio's shares, and is expected to become Nio's third largest shareholder, cnTechPost reported earlier on Tuesday.
Due to the overall shares held by co-founders including Li Bin, even if Geely shares surpassed Li Bin to become the largest shareholder, Geely still did not have the controling right in Nio. However, this move is believed to be Geely's decision to "buy the future."
"We don't comment on this." Nio sources said that as for Nio's financing information investors shall refer to its announcements.
A source from Geely Holding said, "I don't know the matter and don't comment on market rumors."
In fact, this is not the first news that car companies plan to invest in Nio.
On January 15, media reports said that GAC Group plans to invest 1 billion US dollars in Nio shares.
In this regard, GAC Group issued a clarification announcement saying that the two parties have discussed Nio's financing plan, but they are still at an early stage and have not formed any binding agreement.
In addition to GAC Group, Geely Automobile and FAW Group are also rumored to plan to invest in Nio.
In 2020, news of Nio's financing continued. On February 6 and February 14, Nio completed two convertible bond financings, each with a cumulative amount of $ 200 million. The investors of Nio's two consecutive financings are "non-related party" Asian investment funds.
Regarding the major strategic financing expected by the industry, Nio responded: "Other financing projects are still ongoing and positive progress has been made. We will disclose the progress of financing projects according to disclosure requirements.
At present, Nio is mainly focused on China's business development and efficiency enhancements will bring strategic value to financing projects. "
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