• Wed. Sep 28th, 2022

Chinese electric vehicle maker Nio plans secondary listing in Singapore

ByRandall B. Phelps

May 6, 2022

Chinese electric car manufacturer NIO Inc. NIO,
-15.17%
plans a secondary listing of its American Depository Receipts in Singapore, a move to broaden its investor base in one of Asia’s financial hubs.

The company has received a letter of conditional eligibility to list from the Singapore Stock Exchange, NIO announced on Friday.

“An introductory document relating to the proposed secondary listing through the listing of shares on the main board of SGX-ST is expected to be released later this month,” he said.

Once listed, the shares will be fully fungible with NYSE-listed ADRs.

NIO and other Chinese companies have been identified by the U.S. Securities and Exchange Commission as unable to meet a regulatory requirement for auditors.

The SEC identified these companies under the Holding Foreign Companies Accountable Act, which requires companies to have auditors who can be inspected by the US Public Company Accounting Oversight Board.

US regulators are seeking to ban trading in securities of companies whose auditors cannot be inspected by the PCAOB for three consecutive years.

In a statement Thursday, the electric vehicle maker said it continues to comply with applicable laws and regulations in China and the United States, and will strive to maintain its listing status on both the NYSE and on the Hong Kong Stock Exchange.