On February 28, the Chinese electric vehicle (EV) maker NIO Inc. plans to carry out secondary listings by introduction in Hong Kong and Singapore as it seeks to grow its business in the region.
This listing adopts a “way of introduction” listing, which does not involve the issuance of new shares and fundraising. The company plans to offer its shares for trading in Hong Kong on March 10, 2022, using the ticker symbol “9866”. NIO stated that listing in Hong Kong through introduction will help attract more investors, without affecting the interests of existing shareholders.
The pioneer Chinese EV maker was also reported to apply for a “way of introduction” listing on the main board of the Singapore Stock Exchange. The electric vehicle company said it has no plans to make the Singapore and Hong Kong-listed shares exchangeable.
According to NIO’s third-quarter financial report in 2021, NIO’s cash reserves reached 47 billion yuan. In the fourth quarter, NIO issued another 2 billion US dollars (about 12.7 billion yuan) in US stocks. NIO now has approximately 60 billion yuan in cash reserves, indicating that it is well-funded.
When its stock price was at its peak, NIO’s market value not only ranked first among Chinese auto companies, but also surpassed the Mercedes-Benz Group AG and ranked fourth in the global auto market at that time. Now, the market value of NIO is much less than that of XPeng motors or Li Auto.
According to the China Automobile Association, the sales of new energy vehicles in China will reach 5 million in 2022, up 42% year-on-year, while the market share of new energy vehicles is expected to exceed 18%.