Unlike the dual primary listings of XPeng and Li Auto, NIO will have a secondary listing in Hong Kong and will not issue any new shares.
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In a big surprise, NIO is going public in Hong Kong in a completely different way than its local counterparts XPeng Motors and Li Auto.
NIO has applied to list its already issued Class A ordinary shares, par value US$0.00025 per share, in Hong Kong by way of introduction, according to a filing posted on the Hong Kong Stock Exchange's website today.
The shares will be listed on the main board of the Hong Kong Stock Exchange as a secondary listing and they are expected to commence trading on Thursday, March 10, 2022, subject to final listing approval, according to the filing.
Both XPeng and Li Auto were already listed in Hong Kong last year as dual primary listings, following a complex process in which new shares were issued, while NIO has adopted a different approach to its secondary listing and does not involve any new share issuance.
NIO will trade on the Hong Kong Stock Exchange in board lots of 10 Class A ordinary shares under the stock code 9866.
The company's ADSs, each representing one share, will continue to be listed and traded primarily on the New York Stock Exchange (NYSE), NIO's press release said, adding that shares listed in Hong Kong will be fully fungible with the ADSs listed on the NYSE.
The company has received a letter of in-principle approval from the Hong Kong Stock Exchange for the listing application on February 28, 2022, granting consent for its shares to be listed on the main board, NIO said.
Morgan Stanley, Credit Suisse and China International Capital Corporation are acting as the joint sponsors.
NIO has appointed Morgan Stanley as a designated securities dealer and CICC as alternate designated securities dealer to facilitate liquidity, meet the demand for its shares in Hong Kong and maintain an orderly market for a period of 30 calendar days, commencing at 9:00 a.m. Beijing time on March 10, 2022.
NIO, along with one of its largest shareholders, Tencent, will lend up to 41.4 million shares of Class A ordinary stock to the designated dealer to facilitate the initial transaction.
The following is a press release from NIO:
NIO Inc. (NYSE: NIO) (“NIO” or the “Company”), a pioneer and a leading company in the premium smart electric vehicle market, today announced the proposed secondary listing of its Class A ordinary shares, par value US$0.00025 per share (the “Shares”) by way of introduction on the Main Board of The Stock Exchange of Hong Kong Limited (the “SEHK”).
The Company’s American depositary shares (the “ADSs”), each representing one Share, will continue to be primarily listed and traded on the New York Stock Exchange (the “NYSE”).
The Company has received a letter of in-principle approval to the listing application from the SEHK on February 28, 2022 (Beijing/Hong Kong Time) for the listing of the Shares on the Main Board of the SEHK.
The listing document relating to the proposed secondary listing of the Shares by way of introduction on the Main Board of the SEHK has been published on the website of the SEHK on February 28, 2022 (Beijing/Hong Kong Time).
Subject to final listing approval from the SEHK, the Shares are expected to commence trading on the Main Board of the SEHK on March 10, 2022 (Beijing/Hong Kong Time) under the stock code “9866”.
The Shares will be traded in board lots of 10 Shares. Upon listing on the Main Board of the SEHK, the Shares listed on the Main Board of the SEHK will be fully fungible with the ADSs listed on the NYSE.
With respect to the proposed secondary listing on the Main Board of the SEHK, Morgan Stanley Asia Limited, Credit Suisse (Hong Kong) Limited and China International Capital Corporation Hong Kong Securities Limited are acting as the joint sponsors.
In addition, the Company has appointed Morgan Stanley Hong Kong Securities Limited as the designated securities dealer and China International Capital Corporation Hong Kong Securities Limited as alternate designated securities dealer to carry out bridging and other trading arrangements in good faith and on arm’s length terms with a view to facilitating liquidity to meet demand for our Shares in Hong Kong and to maintain an orderly market for a period of 30 calendar days, commencing from 9:00 a.m. on March 10, 2022 (Beijing/Hong Kong Time).
This press release shall not constitute an offer to sell or the solicitation of an offer or an invitation to buy any securities of the Company, nor shall there be any offer or sale of the securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
We have arranged with our principal share registrar in the Cayman Islands and the Hong Kong Share Registrar for the removal of a portion of our Class A ordinary shares (which includes Shares underlying our ADSs) from our Cayman share register and transfer to our Hong Kong share register at no additional cost to Shareholders prior to Listing.
Please refer to the section headed “Market Arrangements to Facilitate Dealings in Hong Kong” of the listing document for further details.