Chinese electric vehicle maker Nio continues secondary listings in Singapore and Hong Kong

SYDNEY/SINGAPORE (REUTERS) – Chinese electric vehicle (EV) maker Nio Inc plans to conduct secondary IPO listings in Hong Kong and Singapore as it seeks to expand its business in the region.

Documents filed on the stock exchange on Monday (28 February) showed that the New York-listed company had received preliminary approval from the Hong Kong Stock Exchange to trade its shares in the city, while the Singapore Stock Exchange (SGX) was considering a request for secondary listing on the main stock exchange of this council.

Shanghai-based Nio said the Class A shares are expected to start trading on March 10 in Hong Kong under code 9866 once they receive 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, IPOs raise no capital and issue no new shares.

The mechanism was once popular among companies looking to build a brand in Hong Kong and the rest of Greater China.

The decision to pursue an IPO listing was ordered by the company not to dilute or put additional pressure on its shares by issuing new shares in Hong Kong and Singapore, according to a source with direct knowledge of the matter.

Singapore was chosen as the listing location due to the company’s desire to increase its EV market share in that region, the source added.

The source could not be identified as the information was not yet public. Nio did not immediately respond to a request for comment.

A spokesperson for SGX declined to comment on Nio’s listing application. The spokesperson said SGX has nearly 30 secondary listings of companies from various industries and geographies as companies seek to expand their access to a wider range of investors while using the city-state as a ramp for launch to Southeast Asia.

Shares of Nio in New York have fallen nearly 34% so far this year.

Nio had planned to list in Hong Kong last year, but faced questions from regulators about its company structure, including “user trust”, Bloomberg reported in September.

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