Nio, Inc. NIO confirmed Wednesday its secondary listing in Singapore is expected to happen later this month.
What Happened: Shanghai-headquartered Nio said it expects its Class A ordinary shares to begin trading on the main board of the Singapore Exchange Securities Trading Limited, or SGX-ST, on May 20.
The announcement follows the receipt of the eligibility-to-list, or ETL, letter from SGX-ST on May 5. The listing would be by way of introduction, the same route the company adopted for its secondary listing in Hong Kong earlier this year. This route allows listing without any issuance or sale of additional shares.
The proposed listing is contingent on fulfilling the conditions set out in the ETL from the SGX-ST, the company said.
Why It’s Important: Nio’s announcement comes amid the threat of a potential delisting in the U.S. that has led to a sell-off in the stock. Since the company was identified in the provisional list of non-compliant companies, the stock has shed more than one-fourth of its market capitalization.
The company clarified that the shares listed on the SGX-ST would be fully fungible with the ADSs listed on the NYSE.
In the premarket session, U.S.-listed ADSs of Nio were trading 4.32% higher at $14.02, according to Benzinga Pro data.
Photo: Courtesy of Nio