Popular in China’s tier-1 cities, Keep counted around 13.9 million monthly active users as of May 2021 and was valued at more than USD 2 billion following a USD 360 million Series F round that closed in January 2021. Keepīacked by SoftBank and Tencent, the fitness app was expected to raise up to USD 500 million in a US IPO this year-before calling off its plans last week. After attaining resounding success with its short video and news aggregator apps, ByteDance has been expanding into new industries, including education, video games, and enterprise services. The owner of TikTok and Douyin-valued at up to USD 425 billion on the gray market in June-was plotting a massive IPO in the US before the CAC issued new compliance statutes and forced ByteDance to temporarily shelve its plans after company representatives met with officials, the Wall Street Journal reported. Here are several Chinese tech companies that are rethinking their transition from a private firm to a publicly traded company. These enterprises might instead consider tapping domestic capital markets in Hong Kong, Shenzhen, or Shanghai. The new rules, which require companies to submit materials regarding their initial public offerings to the CAC, might affect an array of businesses that were preparing to go public in the US.įollowing Didi Chuxing’s troubled debut, China’s campaign to rein in major tech firms might impact at least 70 companies based in China or in Hong Kong that were set for IPOs in New York, according to Bloomberg. auditing rules.After the Cybersecurity Administration of China, or CAC, rolled out a new policy draft stipulating a mandatory security review for any domestic company with more than 1 million users seeking to list on public markets overseas, tech firms of all sizes took note. regulations being rolled out that could see Chinese companies delisted if they do not comply with U.S. regulators will potentially gain more access to audit documents of New York-listed Chinese companies.Īnalysts also note the tougher stance coincides with new U.S. listing plans and opt for Hong Kong instead, with one source at the time citing Beijing’s concerns that U.S. In May, Reuters reported that Beijing was pressing audio platform Ximalaya to drop U.S. The tougher stance by the Cybersecurity Administration of China has been driven in part by concerns that the United States could gain greater access to data owned by Chinese firms – similar to concerns that the previous Trump administration had voiced about Chinese firms operating in the United States. later this year, a review of the filings showed. listings, Refinitiv data shows, well up from the $1.9 billion from 14 deals in the same period a year ago.Įight Chinese companies including home service platform Daojia Ltd and Atour Lifestyle Holdings have made public filings with the Securities and Exchange Commission (SEC) to list in the U.S. So far this year, a record $12.5 billion by Chinese firms has been raised from 34 U.S. capital markets have been a lucrative source of funding for Chinese firms in the past decade, especially for technology companies looking to benchmark their valuations against listed peers there and tap an abundant liquidity pool. The three banks did not respond to a Reuters request for comment. Morgan Stanley, Bank of America, and China International Capital Corp Ltd (CICC) were the investment banks on the deal. LinkDoc did not immediately respond to a request for comment. The sources declined to be identified as the information has not yet been made public. The book closed one day earlier than planned on Wednesday, one of the three sources and a separate person said. It had planned to sell 10.8 million shares between $17.50 and $19.50 each. Article contentīacked by Alibaba Health Information Technology Ltd, LinkDoc filed for its IPO last month and was due to price its shares after the U.S. This advertisement has not loaded yet, but your article continues below.
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