Nio Shares Expected To Begin Trading On March 10 As Key Approval Secured: What You Need To Know

U.S.-listed Chinese electric vehicle maker Nio Inc NIO said on Sunday it has secured a key approval for a secondary listing in Hong Kong after months of delays due to questions about the company’s user trust holdings.

What Happened: The Shanghai-based Nio said it has received a letter of in-principle approval from the Stock Exchange of Hong Kong Limited (SEHK) to list its Class A ordinary shares valued at $0.00025 a share on its Main Board.

Nio’s American depositary shares (ADS), each representing one share, would continue to be primarily listed and trade on the New York Stock Exchange (NYSE).

Shares in Hong Kong are expected to begin trading in lots of 10 shares on March 10, under the stock code “9866” and would be fully fungible with the ADSs listed on the NYSE.

Morgan Stanley and Credit Suisse are acting as joint sponsors for the proposed secondary SEHK listing.

See Also: Nio Said To Be Exploring Secondary Listing In Singapore Amid Hong Kong Delay

Why It Matters: Nio had reportedly applied for a Hong Kong listing in March last year.

The Tesla Inc TSLA rival had in September announced plans to sell up to $2 billion of American depositary shares in an at-the-market offering.

Nio’s local rivals Xpeng Inc XPEV and Li Auto Inc LI had last year completed their dual-listing in Hong Kong in July and September, respectively. 

See Also: What Does Nio US Stock Sale Mean For Its Hong Kong Listing Plans?

Nio is scheduled to report monthly delivery numbers on Tuesday.

Price Action: Nio shares closed 1.3% lower at $20.9 a share on Friday. The stock is down 37.4% so far this year.

Photo: Courtesy of Nio