China's Nio to get near $740 million investment from Abu Dhabi-backed firm

Investment

Nio Inc said on Tuesday that CYVN Holdings, a firm backed by the Abu Dhabi government, will invest about $738.5 million in the Chinese electric vehicle maker.

The news sent Nio's U.S.-listed shares down about 3% at $9.12.

Nio and peers Xpeng and Li Auto are among the companies competing to grab a larger EV market share in the world's largest automotive market dominated by BYD.

Under the deal with CYVN Holdings, Nio will issue about 85 million new Class A shares at $8.72 per share to the firm.

CYVN has also entered into a deal with an affiliate of Tencent Holdings, under which it will pick up some shares of Nio.

Upon closing of both deals, CYVN will own 7% stake in Nio, the EV maker said.