China Trucking Startup Raises $1.6 Billion in U.S. IPO
(Bloomberg) — Full Truck Alliance Co., an Uber-like trucking startup, raised $1.6 billion after pricing its U.S. initial public offering (IPO) at the top of a marketed range in one of the biggest listings stateside by a Chinese company this year.
The startup backed by SoftBank Group Corp. and Tencent Holdings Ltd. sold 82.5 million American depositary shares (ADSs) Monday for $19 each, according to a statement. It marketed the ADSs at $17 to $19 each, with one ADS representing 20 ordinary shares.
The company — known as Manbang in Chinese — will have a market value of $20.6 billion based on outstanding shares listed in its filings with the U.S. Securities and Exchange Commission.
At the same time, the company is raising $100 million each from private placements of its shares — one with the Ontario Teachers’ Pension Plan Board and the other with an entity affiliated with Abu Dhabi sovereign wealth fund Mubadala Investment Co. PJSC.
Full Truck Alliance’s IPO rivals e-cigarette maker RLX Technology Inc.’s $1.6 billion listing in January as one of the largest by a Chinese company in the U.S. this year. If its underwriters exercise a so-called greenshoe, or over-allotment option, the Chinese company’s offering could raise as much as $1.8 billion.
Full Truck Alliance, which operates a truck-sharing app connecting merchants that need shipping with truck drivers, is going public after the buoyant June 11 Nasdaq debut of Kanzhun Ltd. — the owner of Chinese online recruitment platform Boss Zhipin.
Kanzhun shares almost doubled from the IPO price, underscoring a renewed appetite for listings by Chinese companies after a lull in May when several put their U.S. listing plans on hold. Companies based in China and Hong Kong have raised $8.6 billion in U.S. IPOs so far in 2021— almost four times the total last year, according to data compiled by Bloomberg.
Another eagerly awaited deal is the U.S. flotation of China-based ride-hailing giant Didi, which filed this month for an offering that could give the company a value of as much as $100 billion, Bloomberg News reported. The IPO could be one of the largest listings globally this year.
Full Truck Alliance, based in Guiyang, the capital of the southwestern Guizhou province, was formed in a merger of China’s two largest truck-sharing platforms — Huochebang and Yunmanman. Apart from Tencent and Softbank, Full Truck’s backers include Google parent Alphabet Inc.’s CapitalG, Sequoia Capital China, Fidelity International and Jack Ma’s Yunfeng Capital.
The company posted a loss of $532 million on net revenue of $396 million last year, according to the filings. It said it plans to use the proceeds from the IPO on investments in infrastructure, technology innovation, expanding its service offerings, and for general corporate purposes, including meeting working capital needs and to fund potential acquisitions and investments.
Full Truck’s offering is being led by Morgan Stanley, China International Capital Corp. and Goldman Sachs Group Inc. The shares are expected to begin trading Tuesday on the New York Stock Exchange under the symbol YMM.
Contact editor Bob Simison (firstname.lastname@example.org)
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