Chinese EV maker NIO wins approval for secondary listing in Singapore

Chinese electric vehicle (EV) maker NIO has got a nod from the Singapore Exchange (SGX) for a secondary listing, The Strait Times reported. 

In a statement, NIO said it received the conditional eligibility-to-list letter (ETL) from the SGX on Thursday, and that it aims to complete listing requirements by the end of the month.

If it goes ahead, NIO will become the first Chinese automaker to be listed on the New York Stock Exchange (NYSE), Hong Kong Stock Exchange (HKEX) and SGX.

Previously in March, NIO went public in Hong Kong by way of introduction, which allowed it to swap shares already traded on NYSE to HKEX, rather than raising funds by issuing new shares.

Listing by introduction is a way of listing shares already in issue on another exchange. No marketing arrangement is required as the shares for which listing is sought are already widely held. The listing approval procedures for a new listing by introduction are the same as those for initial public offerings (IPO).

The proposed listing in Singapore will also follow the listing by introduction path.

The company said that it will list in Singapore its Class A ordinary shares, with a par value of US$0.00025 per share. The company’s ADS will continue to be primarily listed and traded on the NYSE, it added.

The move comes as NIO and dozens of other US-listed Chinese companies were added to a list of firms facing possible delisting from American exchanges by the US Securities and Exchange Commission.

NIO said in a statement on Thursday that it will continue to comply with applicable laws and regulations in both China and the US, and that it will work to maintain its listing on both the NYSE and the HKEX.

The Shanghai COVID-19 lockdown, which started in late March, strained the auto industry’s supply chain, forcing NIO’s Hefei plant in eastern China to close for a time. While the production has resumed two weeks ago, supply chain snags have not been fully resolved.