Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | Twitter
One day after being added to HFCAA list, NIO announced on Thursday evening (EST) the proposed secondary listing of its Class A ordinary shares, par value US$0.00025 per share, by way of introduction on the Main Board of the Singapore Exchange Securities Trading Limited. The Company’s American depositary shares (the “ADSs”), each representing one Share, will continue to be primarily listed and traded on the New York Stock Exchange (the “NYSE”).
The Company has received a conditional eligibility-to-list letter (“ETL”) from the SGX-ST on May 5, 2022 for the listing and quotation of the Shares on the Main Board of the SGX-ST. The ETL is not an indication of the merits of the proposed secondary listing of the Company’s Shares on the SGX-ST, the Company, its subsidiaries, the ADSs and/or the Company’s Shares.
An introductory document relating to the proposed secondary listing by way of introduction of the Shares on the Main Board of the SGX-ST is targeted to be issued later this month prior to the listing on the Main Board of the SGX-ST. Upon listing on the Main Board of the SGX-ST, the Shares listed on the Main Board of the SGX-ST will be fully fungible with the ADSs listed on the NYSE.
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After the approval received on February 28th, NIO shares started being traded on the Main Board of The Stock Exchange of Hong Kong on March 10. After XPeng and LI Auto listing during the last summer, also NIO is now trading on SEHK and the stock code “9866” regarding its first models: EP9, ES8, EC6 and ES6. NIO stock opened in HKSE at 160 HKD, $20.46 USD.
On Wednesday evening, US SEC updated the Holding Foreign Companies Accountable Act (HFCAA) list adding NIO, XPeng and many other Chinese companies. According to the law approved in late 2020, the companies on the list used an auditor “whose working paper cannot be inspected or investigated completely by the PCAOB”. Previously, on April 22, also the Chinese automaker LI Auto was added to the HFCAA list.
NIO Answer to the HFCAA list
NIO has been actively exploring possible solutions to protect the interest of its stakeholders. On March 10, 2022, the Company completed a secondary listing of its Class A ordinary shares on the Main Board of the Hong Kong Stock Exchange (the “HKEX”) under the stock code “9866.” The Class A ordinary shares listed on the HKEX are fully fungible with the ADSs listed on the NYSE.
NIO will continue to comply with applicable laws and regulations in both China and the United States, and strive to maintain its listing status on both the NYSE and the HKEX in compliance with applicable listing rules.
Under the HFCAA, the PCAOB has the responsibility for determining that it is unable to inspect or investigate completely a registered public accounting firm or a branch or office of such a firm because of a position taken by an authority in a foreign jurisdiction. The Commission’s role at this stage of the process is solely to identify issuers that have used such PCAOB-identified public accounting firms to audit their financial statements, SEC says.
Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | Twitter