Chinese EV maker NIO is considering a secondary listing in Singapore as early as this year, as its plans to list in Hong Kong face regulatory scrutiny, IFR said today, citing people familiar with the matter. NIO said they would not comment on market rumors.
In July 2021, XPeng Motors went public in Hong Kong for the second time. A month later, Li Auto also successfully landed on the HKEx. However, the listing of NIO in Hong Kong has not been approved mainly due to the inquiries from the HKEx about its structure, including a user trust.
The user trust holding is a promise made by William Li, NIO‘s founder, chairman and CEO, in his August 2018 IPO prospectus letter to shareholders – to grow with users and make NIO a truly user-centric company. Li put up 50 million shares, and gave the right to dispose of its proceeds to users. The core of the user trust is to enable users to enjoy the proceeds from the company’s shares while creating a user ecosystem.
According to the IFR report, with a Hong Kong listing hanging in limbo, NIO has begun considering a Singapore listing. Based on NIO‘s market capitalization of $37.8 billion on Tuesday, the move could raise about $1.9 billion, assuming the company would sell up to 5 percent of its shares, according to the report. However, one of the people familiar with the matter said that NIO would not completely abandon its plans for Hong Kong and would continue discussions with regulators there.