Chinese electric vehicle (EV) maker NIO (NYSE: NIO) said today that it will sign an agreement worth $600 million to subscribe for additional registered capital in NIO (Anhui) Holdings Limited.
NIO's shareholding in NIO China will rise to 86.5% from 84.5% upon completion of the subscription and redemption of shares.
NIO was up more than 3% pre-market.
On September 18, NIO announced that it had signed an agreement with Hefei JianJianheng New Energy Fund, one of NIO China's shareholders, on September 16 to redeem NIO Nextev's 50 percent stake in NIO China, equivalent to an 8.6% stake in NIO China.
Previously, NIO held 75.8851 percent of NIO China and other strategic investors held 24.1149 percent of the entity, including 17.2249 percent by Jiancheng New Energy Fund.
After the buyback, NIO's holdings reached a total of 84.5% controlling stake in NIO China.
Under the agreement signed at the time, NIO had the right to buy back the 50 percent stake held by Jianheng New Energy Fund prior to the listing of NIO China.
The move triggered speculation that NIO China may soon go public in China.
However, NIO told the Beijing News that the establishment of NIO China is to open the channel for NIO's RMB financing, "The listing is a kind of RMB financing, and there is no such plan in the near future.”