Chinese EV Maker Nio Debuts on the Hong Kong Stock Exchange Without Having to Raise Any Additional Funds!
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- Nio has finalized its HK IPO less than two weeks after the plans were disclosed.
- Unlike two significant competitors that were listed last year, the business elected not to raise fresh money through the Hong Kong offering.
- The electric vehicle maker joins a growing number of US-listed Chinese businesses that have added Hong Kong listings to protect themselves against delisting due to escalating UnitedStates-China tensions.
Nio, a Chinese EV maker, began trading on the Hong Kong Stock Exchange on Thursday after the company chose a fast pathway to list that did not require raising fresh capital.
Nio’s shares began trading less than two weeks after the company announced its plan to list in Hong Kong using this pathway, known as a “listing by way of introduction.” On its first day of trading, the stock finished at HK$158.90, compared to a price of $20.17 ($HK157.72) on Wednesday for its New York-listed American depositary shares.
Nio’s shares on the New York Stock Exchange rose 12.2% on Wednesday but were still down 36.3 percent for the year as of Wednesday’s close.
Nio has joined a growing number of US-listed Chinese businesses that have decided to list on Hong Kong’s market in recent months, ostensibly to avoid being delisted from U.S. exchanges amid rising US-China tensions. Last year, Xpeng and Li Auto, two of Nio’s US-traded local rivals, were both listed on the Hong Kong stock exchange.
DiDi Global, a Chinese ride-hailing startup, stated in December that it would delist from the New York Stock Exchange due to pressure from the Chinese government.
Xpeng and Li Auto both went the usual pathway to a Hong Kong listing, garnering $2.1 billion and $1.5 billion, respectively. Nio, on the other hand, had $7.3 billion in cash on hand at the end of the third quarter of 2021 and had raised an additional $1.7 billion in an at-the-market offering in New York in November, so it didn’t feel the need to seek more money with its Hong Kong trading debut.
After the U.S. markets close on March 24, Nio will release its fourth-quarter and full-year 2021 profits.