A leading China-based EV maker, Nio, already listed on the New York Stock Exchange since 2018, is exploring a listing on the Singapore Exchange as well, according to the International Financing Review.
A meeting to kick-off the potential listing, involving the various market professionals, was held recently. According to IFR, assuming Nio is selling 5% of its shares, would raise around US$1.9 billion, based on its market cap of around US$37.8 billion as of Jan 26.
Nio, dubbed "China's Tesla", had filed its preliminary prospectus for a Hong Kong listing last year, but the listing was reportedly delayed. If Nio had gone ahead with a Hong Kong listing, it would be a similar arrangement as two other China-based EV makers: Xpeng and Li Auto. Both of whom listed in the US first, before launching a dual-primary listing in Hong Kong.
Xpeng raised US$1.8 billion last July from its Hong Kong dual-primary listing; via its offer of 85 million shares at HK$165 each; Li Auto listed in Hong Kong a month later in a dual-primary listing. It raised US$1.52 billion, selling shares at HK$118 each.
IFR, citing one of the people familiar with the matter said NIO has not completely given up on its listing plans for Hong Kong and would continue discussions with regulators there.
Nio did not comment when asked by The Edge Singapore about the possible listing on Jan 23.
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China’s market regulators are reportedly putting in place tighter rules over these so-called VIE (variable interest entity) companies — the structure used by Chinese companies for some two decades to list outside China, especially the US.
Hong Kong is the favoured listing for these “home-coming” companies but SGX is positioned as a “neutral” location with good access for the international investment community as well.
Shanghai-based Nio was founded in 2014 by internet entrepreneur William Li Bin. Early investors included Tencent, Temasek Holdings, Sequoia, Lenovo and TPG.
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In its September 2018 US IPO, Nio raised some US$1 billion by selling 160 million American depository shares at US$6.26 each.
Nio’s share price reached an all-time-high of US$64.60 last January, before trending back down to around US$20.90 as of Jan 28.
For 3QFY2021 ended Sept 2021, Nio reported revenue of RMB9.8 billion, up 116.6% y-o-y, on higher sales of vehicles which hit 24,439 units in the quarter, up 100.2% y-o-y.
However, its net loss widened 140.7% y-o-y to RMB2.86 billion on higher cost.
Photo: Bloomberg
