U.S.-listed Chinese electric carmaker Nio Inc (NYSE: NIO) on Friday made its debut on the Singapore stock exchange, with shares jumping 20% in early trading, as it laid out plans to open a local research center focused on artificial intelligence and self-driving cars.
What Happened: Shanghai-based Nio said it has successfully listed its Class A shares on the Main Board of the Singapore Exchange Securities Trading Limited (SGX-ST).
"Nio has further strengthened its footing in the global capital markets with Singapore's strategic significance,” founder and CEO William Li said.
Nio’s primary listing will remain in New York. The shares listed on the Singapore bourse will be fully fungible with the ADSs listed on the NYSE. The stock has a secondary listing in Hong Kong as well.
Nio shares opened at S$16.90 in Singapore and jumped 20% in early trading. The EV maker, considered a rival to sector leader Tesla Inc (NASDAQ: TSLA) did not raise funds for the listing as it did not take the traditional initial public offering process.
See Also: Nio Announces Secondary Listing In Singapore Amid Fears Of US Expulsion
U.S. Delisting Risks: Nio is among a host of Chinese companies included in a list by the U.S. Securities and Exchange Commission for stocks that face delisting risk because Beijing refused to allow auditing access.
“Indeed, U.S. listed Chinese stocks are facing regulatory pressure at the moment. But we are seeing the regulatory agencies in the two countries are actively in discussion,” CNBC reported on Friday, citing Li.
“We believe by listing in three exchanges in Hong Kong, Singapore and the United States that we are offering investors more options.”
Price Action: Nio closed 5.2% higher at $16.7 on Thursday.
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