(Bloomberg) -- Chinese electric-car maker Nio Inc. will start trading on the Hong Kong stock exchange next week, choosing a path to listing that doesn’t involve selling new shares or raising any money.
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The Shanghai-based automaker has applied for a secondary listing of its Class A ordinary shares on the Hong Kong exchange by way of introduction, it said in a statement. Trading is expected to start March 10, subject to final approval from regulators.
The company initially filed for a Hong Kong listing in March 2021, but that was delayed amid regulatory concerns about aspects of its structure, Bloomberg News reported last year. In 2019, Chief Executive Officer William Li transferred 50 million company shares to a Nio User Trust, though he retained voting rights over the shares.
The move completes a homecoming of sorts by all three U.S.-traded Chinese EV manufacturers -- Nio, Xpeng Inc. and Li Auto Inc. -- after the latter pair listed on the Hong Kong exchange last year. A second listing in Hong Kong provides a hedge against the risk of being delisted from U.S. exchanges.
However, unlike its rivals, Nio chose to list by way of introduction -- an easier way for a company already listed elsewhere to join the Hong Kong market. Nio won’t sell shares or raise new funding, so won’t incur additional listing expenses, according to the exchange’s website. Xpeng raised about $2 billion in its Hong Kong listing, while Li Auto raised around $1.7 billion.
With its Hong Kong listing delayed, Nio in September raised $2 billion in American depositary receipts.
Separately, Nio said it has also applied for a secondary listing by way of introduction on the Singapore stock exchange, and the application is under review.
Founded in 2014, Nio has recovered from a near-death experience to gain a solid foothold in China’s burgeoning EV market, delivering 91,429 cars in 2021. Its American depositary receipts will continue to be primarily listed and traded on the New York Stock Exchange.
Nio’s U.S.-traded shares have slumped 34% this year.
(Adds application for Singapore listing in 7th paragraph.)
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