Nio's Hong Kong listing faces delay into next year

[HONG KONG] Chinese electric-car maker Nio Inc may delay its planned Hong Kong listing to next year, according to people familiar with the matter.

The US-traded company filed for a second listing in Hong Kong in March, but is not likely to debut in the Asian financial hub before early 2022, the sources said, asking not to be identified as the information is private. Nio has received queries from the Hong Kong stock exchange about aspects of its structure, including a user trust set up in 2019, they added.

Widely seen as one of Tesla's closest competitors in China, Nio announced on Wednesday that it plans to sell as much as US$2 billion in American depositary receipts. The US share sale allows the firm to raise money quickly given the delay in the Hong Kong listing plan, a different source said. Deliberations are ongoing, and Nio could still decide not to proceed with a Hong Kong listing, the sources said.

Nio shares fell as much as 3.5 per cent in premarket trading following the Bloomberg News report. They have declined about 22 per cent this year.

Attempting to become the first high-end electric vehicle player to come out of China, Nio calls itself a "user enterprise" - building a dedicated customer base with exclusive owners' clubs and generating revenue from loyal fans with lifestyle products ranging from clothing to exercise equipment.

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