U.S. listed Chinese electric vehicle maker Nio Inc (NYSE:NIO) on Thursday announced plans for a secondary listing of its Class A shares in Singapore.
What Happened: Shanghai-based Nio said it has received a conditional eligibility-to-list letter (“ETL”) from the Main Board of the Singapore Exchange Securities Trading Limited (SGX-ST).
The shares listed on the Main Board of the SGX-ST will be fully fungible with the ADSs listed on the NYSE upon listing, Nio said.
Nio’s primary listing will remain in New York, the company said.
The EV maker that competes with Tesla Inc (NASDAQ: TSLA) and local startups including Xpeng Inc (NYSE: XPEV) said its Class A ordinary shares with a face value of US$0.00025 per share will be listed on the SGX-ST.
See Also: Nio Said To Be Exploring Secondary Listing In Singapore Amid Hong Kong Delay
Why It Matters: Nio was among 80 Chinese companies included in a new list by the U.S. Securities and Exchange Commission on Wednesday for stocks that face expulsion from bourses because Beijing refused to allow auditing access.
Nio recently started taking the “by way of introduction” mode in which it did not have to raise funds. Companies listing stock by introduction raise no capital and issue no new shares in a secondary listing, unlike a regular initial public offering.
Rival Chinese EV makers Xpeng and Li Auto Inc (NASDAQ: LI) got listed in Hong Kong bourses last year.
Price Action: Nio's U.S. shares closed 15.2% lower at $15.4 on Thursday.
Photo courtesy: Nio
