Hot stock: Nio rises 17.4% on news of strategic investment in China unit
The last time the counter hit such levels was in January, when it traded above US$7.60
SHARES of Nio shot up by as much as 21.9 per cent on Monday (Sep 30), following news that strategic investors will invest around 3.3 billion yuan (S$602.6 million) into its China unit Nio Holding Co, also known as Nio China.
At 9.36 am, the Chinese electric-vehicle manufacturer counter rose US$1.36 or 21.9 per cent to a high of US$7.58 after 386,550 securities changed hands.
The last time the counter reached such levels was in January, when it traded above US$7.60.
By 11.50 am, just before the midday trading break, it had eased slightly to U$7.39, but it was still up US$1.17 or 18.8 per cent; it was also still one of the most actively traded counters in terms of volume, with 916,810 shares transacted.
No married deals were recorded in early trade, ShareInvestor data indicated.
Nio was up 17.4 per cent or US$1.08 at US$7.30 when the market closed.
On Sunday, Nio announced that its China unit would receive 3.3 billion yuan from strategic investors for newly issued shares.
This comes on top of an additional 10 billion yuan that it would pump into its China unit’s new shares, bringing the total investment received by Nio China to around 13.3 billion yuan.
The transactions reduce Nio’s holding in its China unit from 92.1 per cent to 88.3 per cent; the remaining 11.7 per cent will be held by the strategic investors among other stakeholders.
This injection comes amid the electric-vehicle maker’s expansion of its charging infrastructure and battery-swopping technology, which – alongside research and development spending on non-auto areas such as semiconductors – are part of its efforts to gain a competitive edge.
