Home Finance China’s Full Truck Alliance pauses $1 billion Hong Kong listing – sources

China’s Full Truck Alliance pauses $1 billion Hong Kong listing – sources

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Chinese language truck-hailing apps Huochebang and Yunmanman, owned by Full Truck Alliance, are seen on cellphones on this illustration image taken July 5, 2021. REUTERS/Florence Lo/Illustration

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HONG KONG, April 28 (Reuters) – Plans by Full Truck Alliance Co Ltd (YMM.N), China’s ‘Uber for vans’, to boost $1 billion in a Hong Kong itemizing this yr have been paused as a Chinese language cybersecurity regulator has but to announce findings of a probe into the corporate, two individuals with information of the matter informed Reuters.

The corporate, backed by buyers together with SoftBank’s Imaginative and prescient Fund and Tencent Holdings (0700.HK) and often called Manbang in China, has been planning a twin major itemizing in Hong Kong since no less than October. It raised $1.6 billion in its New York preliminary public providing (IPO) in June final yr.

However in July final yr the Our on-line world Administration of China (CAC) mentioned it was scrutinising two of Full Truck’s apps as a part of investigations aiming to “forestall nationwide information safety dangers and safeguard nationwide safety”. learn extra

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Full Truck, unable to tackle new clients pending the evaluate’s completion, had anticipated the CAC to finalise any penalties by the top of March, and hoped to proceed with its Hong Kong itemizing after that, one supply mentioned.

With restricted updates from the regulator over the previous few weeks, nevertheless, the corporate is unaware of when it may very well be given the findings or attainable penalties, the particular person mentioned, like different sources declining to be recognized citing confidentiality constraints.

Full Truck didn’t reply to Reuters request for remark. The CAC additionally didn’t reply to faxed questions.

Fashioned in 2017 out of a merger between two digital freight platforms Yunmanman and Huochebang, Full Truck runs a cell app that connects truck drivers to folks that must ship gadgets inside China.

The corporate’s itemizing in Hong Kong would have added to a rising record of New York-listed Chinese language corporations in search of a presence in bourses nearer to residence through second listings amid heightened scrutiny and stricter audit necessities from U.S. regulators.

Amid ongoing weak spot in shares of Chinese language corporations listed in the US, Full Truck’s inventory has skidded to $4.95 from $19 in its IPO. Full Truck hasn’t disclosed its intentions concerning the way forward for its New York itemizing.

As a consequence of a long-running Sino-U.S. audit stand-off, the U.S. authorities are shifting in the direction of kicking Chinese language firms off American inventory exchanges if the corporations’ audit work papers are unavailable for inspection for 3 years in a row.

The individuals with information of the matter mentioned Full Truck is unable to press forward with a Hong Kong share sale so long as uncertainty sparked by the regulatory investigation surrounds the enterprise.

The probe into Full Truck got here after the our on-line world regulator opened an identical investigation into Chinese language ride-hailing app Didi International Inc (DIDI.N) following its itemizing in New York in June in opposition to regulators’ needs.

Didi has additionally put its plan to record in Hong Kong on maintain indefinitely because it didn’t win the greenlight from Chinese language regulators for the itemizing, mentioned a separate supply with direct information.

Didi didn’t reply to a request for remark.

The corporate beforehand aimed to file for its Hong Kong itemizing by end-April and record by June. learn extra

Didi mentioned this month that it’ll maintain a rare basic assembly on Could 23 to vote on its New York delisting plans. learn extra

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Reporting by Julie Zhu and Scott Murdoch in Hong Kong; Enhancing by Sumeet Chatterjee and Kenneth Maxwell

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