China's new energy vehicle leading brand Nio Inc announced on Tuesday that it has entered into a share subscription agreement with CYVN Holdings LLC, an investment vehicle majority owned by the Abu Dhabi government.

CYVN Holdings will invest an aggregate of $738.5 million in cash to subscribe 84,695,543 newly issued Class A ordinary shares of the Nio Inc at a per share purchase price of $8.72, which is expected to take place in early July 2023.

Meanwhile, CYVN Holdings has also entered into agreement to purchase 40,137,614 Class A ordinary shares of Nio Inc from an affiliate of Tencent, making the total investment over $1.1 billion.

CYVN Holdings will hold 7 percent of Nio Inc's total issued and outstanding shares and be entitled to nominate one director to the company's board of directors, upon the closing of the investment transaction and secondary share transfer.

In addition, Nio Inc and CYVN Holdings have also agreed to jointly pursue opportunities in Nio's international business, according to the announcement.

Nio Inc's price per share at New York Stock Exchange closed at around $9.35 on June 20.