Recently, the media released news that Geely Automobile plans to invest about 300 million US dollars to buy a stake in NIO Inc. Automobile. Yang Xueliang, vice president of Geely Automobile Group, said, "I don't know about this, nor do I comment on the market rumors." "
On the afternoon of February 18, NIO Inc. said it would not comment on the rumors that Geely Automobile would invest $300m in NIO Inc., and all financing-related information would prevail.
As of press time, NIO Inc. was up more than 7% before trading.
Market participants said that in terms of amount, US $300 million is not a big number for Geely, and it is likely to have an immediate effect on Geely's capital market, and once successful, with reference to the popularity of Tesla, Inc. in the capital market, NIO Inc. Motor may have 10 times the growth space.
The price of Geely's stake in NIO Inc. should not be higher than the previous convertible bond-to-bond share price of $3.07. Analysts believe that.
The primary market conversion price is valued at about $3.433 billion, and NIO Inc. 's latest closing price values the secondary market at $3.969 billion (US stocks) as of Feb. 14. That means NIO Inc. 's current valuation is between $34.33 and $3.969 billion.
On this basis, Geely can buy less than 10 per cent of NIO Inc. 's car for $300m. At present, NIO Inc. Automobile's main major shareholders: Li Bin 14.4%, Tencent 13.3% Bailie GIFFORD&CO LTD 9.7%. The total share capital is 1.053 billion shares, excluding the conversion. The new capital entry will dilute the equity, and Geely should become the third largest shareholder of NIO Inc. after this round of investment.
NIO Inc. 's major shareholder
Related readings:Li Shufu wants to spend 300 million dollars to save NIO Inc.? Both sides responded: no comment