China-based Nio, Inc. (NYSE: NIO) is seeking secondary listings in Singapore and Hong Kong to expand in the region, a report published by Reuters said. The EV maker already has a primary listing in New York.
The Hong Kong Stock Exchange has given preliminary approval to the company for secondary listing by introduction, while an application with the Singapore Exchange is currently under review.
Companies that list their stock by introduction do not raise any capital or issue new shares.
A source with direct knowledge of the matter said, “The decision to pursue a listing by introduction was ordered by the company to not dilute or put further pressure on its stock by issuing new shares in Hong Kong and Singapore.”
Nio said that its shares are scheduled to start trading in Hong Kong from March 10 under code 9866 after the final approval.
Based out of Shanghai, Nio designs, manufactures and sells smart and connected premium EVs in China, Hong Kong, the U.S., the U.K. and Germany. It also provides value-added services and charging solutions.
NIO stock closed 1.3% down on Friday. However, it was trading 1% higher in the pre-market session on Monday at the time of writing.
Recently, CLSA analyst Soobin Park maintained a Buy rating on the stock but lowered the price target to $35 from $60 (67.1% upside potential).
In a research note to investors, the analyst said, “Nio stands out among the electric vehicle start-ups with scale production, while its innovative battery-swapping model differentiates it from other producers.”
Overall, the stock has a Strong Buy consensus rating based on 10 unanimous Buys. The average NIO price target of $56.17 implies 168.2% upside potential. Shares have lost 58% over the past year.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into Nio’s performance.
According to the tool, compared to the previous year, Nio’s website traffic registered a 67.2% decline in global visits year-to-date.
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