EV maker NIO eyes Singapore after Hong Kong, U.S. listings
NIO Inc. (NYSE: NIO; HKEX: 9866), an electric vehicle upstart from China, announced on Friday that it is seeking a secondary listing of its Class A ordinary shares, par value US$0.00025 per share, “by way of introduction” on the Singapore Exchange Securities Trading Limited.
The Company’s American depositary shares (the “ADSs”), each representing one Share, will continue to be primarily listed and traded on the New York Stock Exchange (the “NYSE”).
An introductory document relating to the proposed secondary listing by way of introduction of the Shares on the Main Board of the SGX-ST is targeted to be issued later this month prior to the listing on the Main Board of the SGX-ST.
Upon listing on the Main Board of the SGX-ST, the Shares listed on the Main Board of the SGX-ST will be fully fungible with the ADSs listed on the NYSE.
Listing by Introduction
Listing by introduction is an application for listing of shares already in issueon another exchange where no marketing arrangements are required.
Unlike a typical initial public offering (IPO) or secondary listing, companies listing stock by introduction raise no capital and issue no new shares.
This is because the existing shares for which listing is sought are already of such an amount and so widely held that there would be an open market for the trading in these shares.
The aim of listing by introduction is not to raise capital immediately, but to be able to do so at a later date when the company is in need of capital. It only provides the company with a regulated environment within which to operate and a platform to trade shares with the public investors in the capital markets.
In Singapore, Nio would join 26 companies with a secondary listing, including the likes of Jardine Matheson Holdings Ltd., IHH Healthcare Bhd. and Top Glove Corp. The total market capitalization for secondary listed securities was about S$221 billion ($159 billion) as of end March, about 24% of the total market capitalization.
About Nio
EV start-up Nio, founded in 2014, design, develop, jointly manufacture, and sell premium smart electric vehicles. It also devoted to develop autonomous driving, digital technologies, electric powertrains and batteries.
The Shanghai-based EV maker, along with Guangzhou-headquartered Xpeng and Beijing-based Li Auto, are the three mainland Chinese smart EV firms snapping at Tesla’s heels in China’s domestic market.
The NIO ES6, EC6 and ES8 were the top three premium battery electric SUVs as measured by sales volume in China in the first nine months of 2021, according to Frost & Sullivan.
For the year ended December 31, 2020 and 2021, Nio's revenue increased by 122.3% from
RMB16.26 billion in 2020 to RMB36.14 billion (US$5,670.6 million) in 2021.
It incurred a net loss of RMB4.02 billion (US$630.3 million) in 2021, representing a decrease of 24.3% as compared to a net loss of RMB5.30 billion in 2020.
Bin Li, co-founder and CEO, owns 10.6% of NIO and is its largest single shareholder. Chinese social media giant Tencent Holdings owns a 9.8 % stake, according to the prospectus.
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PaAg1378 : Pardon my ignorance but what is Secondary listing?
Takayamah : loss making in US market, now come to Sg Market to reap, I won't buy it.
Patek1975 : Tesla better la
bobbyus : This id definitely a no buy. It’s a stupid decision by NIO. The US stocks brought down the listing in hongkong by 50%. So if you gain in SG you’ll lose everything in the US. The US economy is in collapse… so definitely stay away from this one unless it’s an independent listing and not linked to the US.
Silverbat : Markets so bad, who has extra $$ to feed the dying bird
Fernanders Sam. : I rather buy STI ETF than this!
♤方展博♤ : If NIO came to Singapore first, they might be successful as the entire island is nuts & had a green plan for 2030... Now losing its foothold in USA, it looks battered & I am certainly not interested in investing in this lame duck now.
White Squire : hahaha, you people amaze me...for the last year everyone has ran from this stock for delisting fears. Now that's over they don't issue more shares, just add another exchange to trade on...and you see that as a problem, wow.
Ah Boo : Come sell ET7 in Singapore, I will buy it![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")