The company has attempted secondary listing a few times. This will put it in the same league as XPeng and Li Auto, its major peers and contenders
China’s premium electric vehicle (EV) maker Nio will start trading on the Hong Kong Stock Exchange on March 10, 2022, under the code “9866,” after its application for a secondary listing recently passed pre-listing review.
The offering will be by virtue of introduction and not incorporate any funding. The joint sponsors are Morgan Stanley, Credit Suisse and China International Capital Corp.
According to Nio, this listing aims to provide alternative trading places for investors, mitigate geopolitical risks, and enlarge investor groups. The dual listings in both the US and Hong Kong will give investors more flexible trading hours.
While stressing that the secondary listing will not dilute existing shareholders' interests, Nio said it will extend the daily trading of its shares from 6.5 hours to 12 hours.
At the same time, observers say it will help introduce more investors, benefitting Nio's long-term development.
According to the prospectus, Nio's founder, chairman and CEO, William Li, holds 10.6% of Nio’s total shares and 39% of the total voting rights. Tencent owns 9.8% and 17.4% of the voting rights.
In November 2021, the Shanghai-based EV pioneer released its third-quarter 2021 financial report, showing that the company generated CNY 9.81 billion in revenue, jumping 116% year on year (YoY).
However, the company recorded an operating loss of CNY 991.9 million, up 4.9% YoY, with a net loss of CNY 835.3 million.
Before Nio, its peers XPeng and Li Auto had completed secondary offerings in Hong Kong in 2021.