Nine completes stock debut in Hong Kong without raising new capital
Nine completes stock debut in Hong Kong without raising new capital

Nine completes stock debut in Hong Kong without raising new capital

Nios et5 electric sedan will begin delivery in September 2022.

Nio

Shares in Chinese electric car manufacturer Nio began trading on the Hong Kong Stock Exchange on Thursday after the company chose a shortcut to listing that did not involve raising new funds.

This move, referred to as an “introductory” listing, allowed Nios shares to start trading less than two weeks after it announced its plan to go public in Hong Kong. The stock closed at HK $ 158.90 in its first trading daycompared to a close of $ 20.17 ($ HK157.72) for its New York-listed U.S. depository on Wednesday.

Nine U.S. listed stocks rose to close around 12.2% on Wednesday, but were still down around 36.3% this year until Wednesday’s close.

Nine join a growing list of US-traded Chinese companies that have chosen to list on the Hong Kong Stock Exchange in recent months, seen as a way to hedge against the risk of being delisted from US stock markets amid growing tensions between the US and China. Two of Nios’ US-traded domestic rivals, Xpeng and Li Autoboth listed on the Hong Kong Stock Exchange last year.

Chinese tour company DiDi Globalunder pressure from its home rule, announced plans to delisting from the New York Stock Exchange In December.

Both Xpeng and Li Auto chose more traditional avenues for their Hong Kong listings, raising $ 2.1 billion and $ 1.5 billion, respectively. But Nio, which ended the third quarter of 2021 with $ 7.3 billion in cash on hand and raised another $ 1.7 billion in a New York market offering in November, felt no need to raise additional cash with its Hong Kong trade debut.

Nine will report its earnings for the fourth quarter and full year 2021, after the U.S. markets close on March 24th.

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