When the old rivals have made efforts one after another, Weilai has to return to Hong Kong stocks in the way of "skipping fundraising and parachuting into Hong Kong stocks". In this way, it can occupy the financing channels of Hong Kong stocks faster and make the financing channels more diversified.
On March 10, the Hong Kong stock market debuted in the form of introduction, and officially began to be listed and traded, with the stock code "9866". It is said that this represents the models previously listed by NIO: EP9, ES8, ES6 and EC6.
At this point, China's new car-making force "Wei Xiaoli" officially gathered in the Hong Kong stock market.
However, unlike the previous Hong Kong-listed Xiaopeng and Ideal, WEILAI opened high on the first day of listing, rising by more than 5%, trading 123,300 shares, and a total market value of 280.4 billion Hong Kong dollars.
The landing of Hong Kong stocks in the form of "introduction" means that it is impossible to immediately achieve fundraising. Why choose this approach? Is it to catch up with the ideal, Xiaopeng or to avoid the risks that may be encountered in the US stock market? In addition, in the future, can listing in this way still be able to enter the "Hong Kong Stock Connect" to further broaden the investment channels for investors?
Return to Hong Kong stocks: avoidance and risk Avoid undervaluation of stock prices
WEILAI Auto has chosen a more special way to return to the Hong Kong stock market.
On the 28th of last month, NIO passed the hearing of the Hong Kong Stock Exchange and was approved to be listed on the main board of the Hong Kong Stock Exchange for the second time in the form of "introduction to listing".
A leading securities company investment banker said: "The use of secondary listing to apply for repatriation, the procedure should be simpler than the main listing." ”
As for why WEILAI Automobile chose to list in this way, or out of consideration to balance the competitive relationship and avoid risks.
Zhang Junyi, managing partner of Oliver Wilver Consulting, said: "The current geopolitical environment is grim, resulting in companies such as 'Wei Xiaoli' moving towards China, and Hong Kong stocks will be a good transition. ”
Shen Meng, executive director of Chanson Capital, added: "In addition, after the promulgation of the Data Security Law, as a company that may touch the policy supervision of the law on user data and other aspects, there is a risk of uncertainty in the future listing of US stocks, so the rapid listing in Hong Kong is conducive to reducing the policy risks of US stock listing, even if it is required by policy regulations to delist from US stocks, investors can still continue to trade stocks through the Hong Kong market." ”
Combined with the current market situation, weilai automobile's return to Hong Kong stocks can boost shareholder confidence on the one hand, and it can be seen that Chinese stocks have been affected in the United States since last year, which is out of risk avoidance considerations. If the current stock price is undervalued, then the return to the Hong Kong market can provide investors with more investment channels.
Some data pointed out that in May 2021, the value of the WEILAI US stock market reached 55.447 billion US dollars, but as of the close of trading on March 9, EST, the weilai US stock market value was 33.664 billion US dollars, which has decreased by more than 20 billion US dollars compared with before. In addition, considering the uncertainty of Sino-US relations and factors such as smart electric vehicle safety data, WEILAI only relies on the US capital market to obtain financing and faces certain potential risks.
In NIO's listing documents, NIO stated that it had made arrangements to facilitate the transfer to Hong Kong and the conversion of American depositary shares into Class A ordinary shares, and had selected Morgan Stanley Hong Kong Limited and China International Capital Hong Kong Securities Limited as designated dealers and substituted designated dealers.
During the post-listing and transition periods, designated traders will conduct certain trading activities on their own, and the transition period will end on 8 April 2022.
Introduction to listing: does not affect financing and does not hinder the entry into "Shanghai-Hong Kong Stock Connect"
Choose to go public in this way, or also because the current Weilai Automobile is not "short of money".
Weilai said: "The company currently has nearly 60 billion yuan of sufficient cash reserves, and there is no urgent financing need in the short term. The abundant cash flow provides a strong financial guarantee for the follow-up research and development of new models of WEILAI. ”
It is understood that according to the previously released financial report, as of September 30, 2021, the company's cash and cash equivalents, restricted currency funds and short-term investments totaled about 47 billion yuan (about 7.3 billion US dollars). In November of the same year, NIO completed about 12.7 billion yuan (about $2 billion) of U.S. stock ATMs (At-The-Market Offering).
After the listing in the "introduction method", Weilai Automobile can still refinance in the future.
Shen Meng, executive director of Chanson Capital, said: "The introduction of the listing does not involve financing at the time of listing, so it can significantly shorten the process and cycle of listing and meet the requirements of 'fast' listing, for NIO, completing the secondary listing in Hong Kong as soon as possible can weaken the advantages of the listing of the main competitor Xiaopeng Automobile in both places." ”
Shen Meng added: "Although NIO did not raise funds at the time of listing, it did not affect the refinancing after the listing. Moreover, the introduction of post-IPO refinancing is no different from general refinancing. At the same time, after the listing in Hong Kong, it is easier to open up investment channels with mainland investors and obtain the support of funds from the south. ”
An investor from Everbright Securities explained: "Weilai adopts the introductory method of listing, but it cannot issue and raise funds at the time of listing. However, after the listing, WEILAI can still issue shares to raise funds according to its own needs. Moreover, the refinancing of listed companies in the Hong Kong stock market is relatively relaxed, as long as it meets the regulations and investors are willing to give money, it can generally be facilitated. ”
It is understood that there are four main forms of refinancing, including placement, rights issue, consideration issue and public offering. Among the four methods, placement is the most important way to refinance Hong Kong stocks.
Brokerage investment bankers said: "The placement includes the issuance of new shares, the placement of old shares and the first old and then the new (that is, the first allocation of old shares, and then the issuance of new shares). The issuance of new shares refers to the issuance of new shares by a listed company to independent third-party investors; the placement of old shares refers to the sale of shares held by major shareholders to investors. ”
In addition, in February this year, according to the relevant provisions of the "Shenzhen Stock Exchange Shenzhen-Hong Kong Stock Connect Business Implementation Measures", Xiaopeng Motors (9868.HK) was included in the list of Hong Kong Stock Connect stocks under Shenzhen-Hong Kong Stock Connect, which officially took effect on February 9. At that time, boosted by this good news, Xiaopeng Automobile rose more than 7% before the market.
So, is WEILAI Automobile, which returned to Hong Kong stocks in the "introduction way", expected to join the "Hong Kong Stock Connect"?
Shen Meng of Chanson Capital said: "The Hong Kong Stock Connect is only related to the market capitalization scale in Hong Kong, and has nothing to do with the listing method, so if the market value and trading activity of WEILAI in Hong Kong in the future meet the standard, it can also enter the Hong Kong Stock Connect." ”
Li Bin, founder, chairman and CEO of NIO, said: "Weilai's successful listing in Hong Kong is inseparable from the trust of users, the dedication of employees and the support of partners. At present, the automotive industry is in an era of rapid change, and we will continue to use technological innovation to continue to bring users products and experiences that exceed expectations, and create long-term returns for investors. ”
It is reported that NIO has been laying out globally, setting up R&D, production, sales and service agencies in Shanghai, Hefei, Beijing, San Jose, Munich, Oxford and Oslo. Last year, the Chinese new energy vehicle company has entered Norway and started delivery, and this year it will officially land in Germany, the Netherlands, Sweden and Denmark, and plans to provide services for users in more than 25 countries and regions around the world in 2025.
As of February 28, 182853 new vehicles (ES8, ES6, EC6) have been delivered. It is understood that Weilai will deliver three new models based on the NT2.0 technology platform during the year, among which the test drive of its first electric coupe model ET7 has officially opened on March 5 and will be delivered on March 28; the medium-sized electric coupe ET5 is expected to start delivery in September 2022; and another medium and large SUV ES7 will be released and delivered this year.
Che Yun Summary:
Although the current WEIlai may not be short of money, the main purpose of the company's listing is mainly to raise more funds to meet the needs of the company's further development. To some extent, the first round of car-making knockout competition has kicked out a number of enterprises that have not yet produced energy, and the next second round of elimination may be the turn of new car-making companies that have not been listed.
For "Wei Xiaoli", a new round of market competition and capital competition is about to begin. Competition, transformation and progress will be the key to winning new vitality.
It is worth mentioning that previously, in order to obtain financing, WEILAI Automobile had signed a VAM agreement with Hefei. According to the agreement, the cumulative total revenue and total tax revenue of 420 billion yuan and total tax revenue of 7.8 billion yuan from 2020 to 2025 will be listed on the Science and Technology Innovation Board by 2025. From the current point of view, the airborne Landing in the Hong Kong stock market is indeed a step closer to returning to the domestic science and technology innovation board market.