Chinese EV maker Nio pursues Hong Kong, Singapore secondary listings
Reuters
Published Feb 27, 2022 08:14PM ET
Updated Feb 28, 2022 12:25AM ET
By Scott Murdoch and Anshuman Daga
SYDNEY/SINGAPORE (Reuters) -Chinese electric vehicle (EV) maker Nio (NYSE:NIO) Inc plans to carry out secondary listings by introduction in Hong Kong and Singapore as it seeks to grow its business in the region.
Stock exchange filings on Monday showed the New York-listed firm had received preliminary approval from the Hong Kong Stock Exchange to trade its shares in the city, while the Singapore Exchange (OTC:SPXCY) was reviewing an application for a secondary listing on the main bourse of that board.
Shanghai-based Nio said the Class A shares are due to start trading on March 10 in Hong Kong under the code 9866 once it receives final approval from the stock exchange.
Its primary listing will remain in New York, the company said.
Unlike a typical initial public offering (IPO) or secondary listing, companies listing stock by introduction raise no capital and issue no new shares.
The mechanism was popular among companies in the past looking to build a brand in Hong Kong and the rest of Greater China.
The decision to pursue an listing by introduction was ordered by the company to not dilute or put further pressure on its stock by issuing new shares in Hong Kong and Singapore, according to a source with direct knowledge of the matter.
Singapore was chosen as a listing venue because of the company's desire to grow its EV market share in that region, the source added.
The source could not be named as the information was not yet public. Nio did not immediately respond to a request for comment.
A Singapore Exchange spokesperson declined to comment on Nio's listing application. The spokesperson said SGX had nearly 30 secondary listings from companies from diverse sectors and geographies as firms look to broaden their access to a wider range of investors while using the city-state as a launchpad into Southeast Asia.
Nio's New York shares have fallen nearly 34% so far this year.
Nio had planned to list in Hong Kong last year but faced questions from regulators over its company structure, including a "users trust", Bloomberg reported in September.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.