Nio Chinese EVs Firm Will List in Hong Kong

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Chinese Electric Carmaker NIO looks for much faster secondary listing in HK through an intro, avoids fundraising!

  • Last year’s listing was held off due to structural issues.
  • Nio will not release fresh shares or look for funds through its Hong Kong listing.

Nio Inc. will start trading on the Hong Kong stock exchange next week, selecting a course to noting that does not need the business to release brand-new shares or raise funds.

The Shanghai-based producer mentioned in a declaration that it has actually gotten a secondary listing of its Class A common shares on the Hong Kong market by method of intro. Trading is set to start on March 10, pending last regulative authorization.

The organization obtained a Hong Kong IPO in March 2021, however it was held off due to regulative fret about its structure. President William Li contributed 50 M company shares to a Nio User Trust in 2019, albeit he kept ballot rights.

After noting on the Hong Kong exchange in 2015, the 3 U.S.-traded Chinese EV producers– Nio, Xpeng Inc., and Li Auto Inc.– have actually finished a sort of homecoming. The threat of being delisted from United States markets is reduced by the 2nd listing in Hong Kong. Unlike its rivals, Nio, on the other hand, chosen to list by method of intro, which is a quicker method for a company that is currently noted abroad to get in the Hong Kong market. According to the exchange’s site, Nio will not offer shares or raise fresh capital, therefore there will be no extra listing expenses.

In its Hong Kong IPO, Xpeng raised approximately $2B, while Li Auto raised around $1.7 B.

Nio raised $2 billion in American depositary invoices in September after its Hong Kong offering was delayed.

NIO Inc . Chinese Electric Vehicle Company
NIO Inc. Chinese Electric Vehicle Company

People acquainted with the scenario informed a reporter in 2015 that Didi Global Inc., among the most prominent targets in a broad Beijing push to control the nation’s huge tech sector, has actually been dealing with banks for a Hong Kong noting that might be by method of intro. The offer needs little promo and permits United States financiers to trade their shares in Hong Kong for the brand-new equity.

In an environment of regulative unpredictability, listing by method of intro is an alternate choice for U.S.-listed Chinese organizations, according to Bruce Pang, head of macro and technique research study at China Renaissance Securities Hong Kong Ltd.

Tencent Holdings Ltd., an early financier in the EV company, would provide 41.4 million Class A shares, or around 2.7 percent of the stock on concern, to authorized dealerships to make available to buyers in Hong Kong to help trade.

Nio likewise revealed that it has actually looked for a secondary listing by method of intro on the Singapore stock market, which is now being examined. According to a Citigroup report, listing in Hong Kong and Singapore will broaden the carmaker’s financing options, reduce political threat, and permit business to engage more totally with Asian financiers.

Nio, which was established in 2014, has actually recuperated from a near-death experience to attain a strong footing in China’s flourishing electrical vehicle market, with 91,429 systems provided in2021 The New York Stock Exchange will continue to be the main listing and trading location for its American depositary invoices.

Nio’s stock has actually dropped 34% this year on the New York Stock Exchange.

Financial Health|Nio Stock Analysis and Predictions|Its Official Nio Lists On The Hong Kong Exchange


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