Nio said it and CYVN, as well as their respective subsidiaries, will continue to work closely together in pursuing strategic and technological collaborations in international markets.

(Image credit: CnEVPost)

Nio (NYSE: NIO) has closed a new round of funding from Abu Dhabi government fund CYVN Investments RSC Ltd, after announcing the deal earlier this month.

Nio announced today that it has closed the $2.2 billion strategic equity investment from CYVN, according to a statement from the Chinese electric vehicle (EV) maker.

In July, CYVN made a $738.5 million strategic equity investment in Nio and acquired a portion of the company's class A ordinary shares from an affiliate of Tencent for total consideration of $350 million. Both transactions closed in July.

Now, with the closing of the $2.2 billion strategic equity investment, CYVN beneficially owns a total of about 20.1 percent of Nio's total issued and outstanding shares, according to the statement.

Going forward, Nio and CYVN, as well as their respective subsidiaries, will continue to work closely together in pursuing strategic and technical collaborations in international markets, the statement said.

Nio announced on December 18 that it entered into a share subscription agreement with CYVN Holdings LLC, in which the Middle Eastern investor will invest a total of $2.2 billion in cash to subscribe for 294 million newly issued shares of Nio's class A ordinary shares at a price of $7.50 per share through its affiliate, CYVN Investments RSC Ltd.

Upon completion of the transaction, CYVN becomes Nio's largest shareholder, although the company's beneficial owner remains its founder, chairman and CEO William Li.

CYVN holds Nio shares as class A ordinary shares with 1:1 voting rights, while Li holds class C shares with 1:8 super voting rights.

As of February 28, 2023, Li held 30,467,776 class A ordinary shares of Nio and 148,500,000 class C ordinary shares, according to Nio's 2022 annual report released in April.

Li previously owned a combined 10.5 percent of Nio's shares and was the largest shareholder with 44.2 percent of the voting rights.

Nio's previous largest institutional shareholder was Tencent, which held 9.7 percent of the company's shares and 5.9 percent of the voting rights, while Baillie Gifford & Co held 7.2 percent of the shares and 4.4 percent of the voting rights.

Nio did not announce its exact shareholding and voting structure following the completion of the investment from CYVN.

CYVN to become Nio's largest shareholder, while William Li to retain most voting rights