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

U.S. listed Chinese electric vehicle maker Nio Inc NIO is exploring a secondary listing in Singapore as early as this year, cnEVpost reported.

What Happened: The Shanghai-based Nio’s plans to list in Singapore come amid increased regulatory scrutiny in Hong Kong, where it was previously said to be pursuing a listing.

Nio had reportedly last year chosen Credit Suisse and Morgan Stanley to arrange its secondary listing in Hong Kong.

The latest move could help Nio raise about $1.9 billion, assuming the company would sell up to 5% of its shares, the report noted, adding that there are chances Nio would not completely abandon plans for a Hong Kong listing.

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

Why It Matters: Nio’s secondary listing plan in Hong Kong is yet to receive clearance from the Hong Kong Stock Exchange due to questions about the company’s user trust holdings.

Nio had reportedly applied for a Hong Kong listing in March last year.

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

Nio delivered over 10,000 delivery electric vehicles in December despite semiconductor headwinds. 

Price Action: Nio shares closed 4.3% lower at $23.8 a share on Tuesday. The stock is down 28.9% year-to-date.

Photo: Courtesy of Nio