Deloitte assists listing of Ninebot
China's first red-chip with VIE structure to have issued CDRs on SSE STAR Market
As the registration-based system of the Mainland's SSE STAR Market and ChiNext continues to progress, Deloitte China assisted Ninebot Limited (Ninebot; 689009.SH) to list on Shanghai Stock Exchange on 29 October 2020 and debut on the SSE STAR Market.
In this initial public offering, Ninebot issued 7.04 million class-A common shares as a converted base for China Depository Receipts (CDRs) accounting for 10% of its total share capital following the CDR issuance. The offer price was RMB18.94 per CDR. The company raised RMB1.334 billion.
The successful listing of Ninebot also created many "firsts" for SSE STAR Market issuers:
- The first overseas-registered red-chip enterprise filing for A-share IPO, and the third red-chip listed company in the A-share market; and,
- The first A-share listed company with a variable interest entity (VIE) structure to issue CDRs
As reporting accountant for the first red-chip company with a VIE structure to issue CDRs in the A-share market, Deloitte China provided professional and high quality audit services to Ninebot. The company's successful listing is a pioneering demonstration of how innovative companies can issue CDRs, and enhance the listing regime for innovative enterprises.
Gao Lufeng, founder, chairman and CEO of Ninebot, and Wang Ye, co-founder and president of the company express their gratitude towards Deloitte China's huge support for its IPO work. They look forward to attaining more outstanding results in its new journey.
Photos provided by Ninebot and Deloitte China's engagement team
About the client
Ninebot was established on 10 December 2014 and is registered in the Cayman Islands. It is principally engaged in design, research, development, production, sales and service of all types of intelligent short-distance mobile devices. Its products include smart self-balancing electric vehicles, intelligent electric scooters, intelligent service robots and electric motorcycles used for short distance travel, robot services and other scenarios. Xiaomi Corporation is one of its largest institutional shareholders, and Ninebot is an important supplier of Xiaomi.
About this engagement
Ninebot is the first CDR stock on Shanghai Stock Exchange. Its listing application and approval process were highly complicated due to it being an overseas-registered red-chip enterprise with a VIE structure.
As early as April 2019, Shanghai Stock Exchange accepted Ninebot's application to list on the SSE STAR Market. But it was only in June 2020 that Ninebot's listing application was finally approved by the SSE STAR Market Listing Committee.
With the joint efforts of the team led by Pauline Zhang, our vice chairwoman, Mark Lian and Mao Guangqin, audit & assurance partners, we delivered professional services to assist the client's successful listing.
Through our high-quality professional services capabilities, Deloitte China will continue to help more innovative technology companies keep one step ahead in an increasingly complex and competitive business environment. We also look forward to contributing to the internationalization of China's capital market by assisting the return of more overseas technology and red-chip companies to its capital market through our international experience and insights.