NIO will be listed in Singapore by way of introduction and has received a conditional listing eligibility letter from the local exchange.
NIO (NYSE: NIO, HKG: 9866) today officially announced its plans for a secondary listing in Singapore, saying it has received a conditional eligibility-to-list letter from the local exchange.
The move comes after NIO revealed the plan in late February when it applied for a secondary listing in Hong Kong, and the company's filing to the Hong Kong Stock Exchange showed that it had applied for a secondary listing not only in Hong Kong, but also in Singapore.
NIO has already made a secondary listing in Hong Kong by way of introduction on March 10, a move that did not involve new share issuance and therefore did not bring in new financing.
The listing in Singapore will make the company the first electric vehicle maker in the world to be listed in three locations.
The company's planned listing in Singapore will be similar to that in Hong Kong, also by way of introduction, with a secondary listing of its Class A ordinary shares on the Main Board of the Singapore Exchange Securities Trading Limited (SGX-ST).
NIO received a conditional listing eligibility letter (ETL) from SGX-ST on May 5, allowing the shares to be listed and quoted on the SGX-ST main board, according to a statement it released today.
The ETL is not an indication of the merits of the proposed secondary listing of NIO's shares on the SGX-ST, the company, its subsidiaries, the ADSs and/or the company’s Shares, the announcement noted.
An introductory document on the move will be released later this month, prior to the SGX-ST listing, according to NIO.
Upon completion of the listing, the shares listed in Singapore will be fully fungible to the company's American Depositary Shares (ADSs) listed on the New York Stock Exchange (NYSE), which will also continue to be listed and traded primarily on the NYSE, the company said.
NIO's statement did not mention why it is following up its Hong Kong secondary listing with another one in Singapore, although previous comments it gave prior to its Hong Kong listing may be of some reference.
A secondary listing in Hong Kong would provide investors with more choices of trading venues and more flexible trading hours, according to a previous response shared with CnEVPost. It would also help bring in more investors and would be beneficial for the company's long-term growth, NIO said.
NIO is in a world of difference from the tough times of 2019, with cash reserves already in the tens of billions of RMB.
As of December 31, 2021, NIO's cash and cash equivalents, restricted cash and short-term investments stood at RMB 55.4 billion, according to its earnings report released in late March.