Photo: Visual China
E-scooter maker Ninebot Ltd. has had its application for an IPO on Shanghai’s Nasdaq-style high tech board passed by the securities regulator, a move that paves the way for Chinese mainland stock markets to pass two significant milestones.
Ninebot, which owns the Segway scooter brand, will become the first foreign-registered Chinese company with a variable-interest entity (VIE) structure to go public, and the first to sell Chinese depositary receipts, a new type of equity security created in 2018 to allow overseas firms to list on a mainland bourse.
Registered in the Cayman Islands, Beijing-based Ninebot is one of dozens of Chinese companies — such as Tencent Holdings Ltd. and Baidu Inc. — that have used the VIE structure to get around government restrictions on foreign direct investment in certain industries, including telecommunications and the internet.
A previous version of this story incorrectly described Chinese depository receipts as a new type of share. They are actually a new type of equity security.
Read the full story here.
Contact reporter Tang Ziyi (firstname.lastname@example.org) and editor Marcus Ryder (email@example.com)