Chinese electric vehicle maker NIO will carry out a secondary listing in Hong Kong by way of introduction, according to stock exchange filings on Monday.
NIO has also applied for a secondary listing on the main board of Singapore Exchange and said the application was being reviewed by the bourse.
Background of NIO’s secondary listings
On January 26, The Standard reported that NIO was considering a secondary listing in Singapore as early as this year, as it faces regulatory review of its plans to list in Hong Kong. With a Hong Kong listing stalled, NIO has begun considering a Singapore listing, the report said.
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 an IPO listing, NIO’s current introductory listing does not issue new shares and does not involve financing, but merely an application by the company’s shareholders to list and trade their own old shares.
The purpose of an introductory listing, according to NIO, is to provide alternative trading venues for the company’s investors, mitigate geopolitical risks, expand the investor base, and not dilute the interests of existing shareholders while these purposes of the listing remain achievable.
NIO has sufficient cash reserves and no urgent need for financing in the short term. As of the end of the third quarter of 2021, NIO’s cash reserves totaled approximately RMB47 billion; In November 2021, NIO completed an approximately RMB12.7 billion U.S. share ATM Offering (At-The-Market Offering), with combined cash reserves of nearly RMB60 billion.
In addition to the Hong Kong listing, NIO’s listing filing to the HKEX shows that it has applied not only for a secondary listing in Hong Kong but also a secondary listing in Singapore. The filing does not disclose the expected date of NIO’s listing in Singapore, but mentions that if the company is listed in Singapore by the end of the second quarter of 2022.
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