Nio gets nod to list shares on Singapore Exchange
Chinese electric-vehicle maker Nio has said it got a provisional green light from the Singapore Exchange to list its shares in the Southeast Asian financial hub, helping to hedge the risk of a US delisting.
The announcement comes on the heels of news on Wednesday that the Securities and Exchange Commission in the United States had put Nio on a list of 80 US-listed Chinese firms that faced delisting under the Holding Foreign Companies Accountable Act (HFCAA). Nio made its initial public offering on the New York Stock Exchange (NYSE) in 2018.
The secondary listing in Singapore would be by way of introduction, mirroring its launch method in Hong Kong in March that did not involve any public offering of shares. The Singapore plan was previously disclosed in its Hong Kong listing document in February.
The HFCAA, signed by former US president Donald Trump, seeks to force foreign companies off US exchanges if they fail to turn over audit results for three consecutive years. The process of delisting non-compliant foreign stocks could begin from late 2023.
“Nio will continue to comply with applicable laws and regulations in both China and the US, and strive to maintain its listing status on both the NYSE and the [Hong Kong exchange] in compliance with applicable listing rules,” it said in a filing on Thursday.
Nio’s two domestic rivals – Nasdaq-listed Li Auto and XPeng, which is on the NYSE – face the same US delisting risk.
Both firms raised new funds from their Hong Kong public offerings, taking in US$2.1 billion and US$1.7 billion last June and August, respectively.
Listing by introduction has gained momentum as it offers a faster route without the need for underwriters to market new shares to prospective investors.
KE Holdings, the online property transaction platform backed by Tencent Holdings, said on Thursday it had received the nod to list by introduction in Hong Kong.
Nio said it planned to issue an introductory document on the proposed listing in Singapore this month, without elaborating.
It said on Monday it had kicked off operations at its second factory to race ahead of local rivals that were struggling with a worsening supply chain bottleneck, following more than a month of citywide lockdown in Shanghai to combat a Covid-19 outbreak.
The 50 billion yuan (HK$60 billion) NeoPark in Hefei, Anhui province, started sample production of the ET5, Nio’s latest model, which is expected to hit the China market in September.
Nio’s American depositary shares slipped by 15.2 per cent in New York on Thursday to US$15.38, the biggest drop since March 2020. Its Hong Kong shares declined by 12 per cent to HK$120.90.