Doesn't rule out chance NIO will seek primary listing status in HK
The big news on $NIO Inc.(NIO)$ $NIO-SW(09866)$ today is the RMB 3bn ($470m) investment by strategic investors (including Anhui govt affiliated firms) for a 3.8% stake (post dilution) in Nio China.
Timing coincides with planned ramp-up of ONVO production to meet strong demand for the company's low-priced EV. Eases funding pressure on the company.
Nio China holds all of NIO's business and assets in China, including vehicle R&D, supply chain, sales & service, and NIO Power.
Post-deal, NIO will have an 88.3% stake in Nio China, while strategic investors hold the remaining 11.7%. It also values Nio China at RMB 78.6bn or $11.2bn.
Not included in Nio China are the company's AI & Autonomous Driving divisions and Nio's international business. Big likelihood Nio China will seek IPO in the mainland exchanges before end-2027.
This would give mainland investors a way to invest in NIO's mainland business only without the worries of Western tariffs and protectionism. Could be a smart move with ONVO hitting the market this 4Q and increasing the buzz around the company in the local scene.
Doesn't rule out chance NIO will seek primary listing status in HKEX Group and get included in the Stock Connect IMHO.
https://x.com/BrianTycangco/status/1840445373200089133
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