![]() Reuters reported earlier this year that the TikTok owner was considering a mammoth listing in New York or Hong Kong read more. ![]() That puts ByteDance and other companies mulling going public in a tough spot. LinkDoc, which was slated to price its IPO on Thursday for a listing on the Nasdaq, now has second thoughts, according to Reuters. It began last week when the Cyberspace Administration of China said it was investigating Didi Global (DIDI.N) just days after the ride-hailing giant went public on the New York Stock Exchange read more. Beijing’s new sweeping mandate to intensify scrutiny of overseas IPOs puts many more at risk read more. But others that hold less sensitive information, like fitness app Keep and podcasting platform Ximalaya, have also given up on a U.S. It's easy to see why the medical data firm might be exactly the kind of local startup Chinese regulators don't want to go public in the United States. One of the sources said Didi is also considering buying back some shares from existing shareholders and company executives at a valuation of US$80 billion prior to the IPO.īut Didi said it had no such plans, when contacted by Reuters.WASHINGTON, July 8 (Reuters Breakingviews) - LinkDoc Technology is pulling its U.S. However, some of its shares had been sold at a valuation below US$50 billion before the Chinese New Year last month in private trades, one of the first two people and an eighth source said. Nine-year-old Didi was valued at US$56 billion in a 2017 fundraising and its valuation exceeded US$60 billion a year later, sources have said. Last year, Chinese companies raised US$12 billion in US listings, more than triple the fundraising amount in 2019, according to Refinitiv data. The queries were mainly linked to matters including business compliance and the company has yet to clear a hearing with the bourse, said the person with knowledge of the matter.ĭidi’s planned listing in the United States will add to the strong momentum of Chinese companies tapping investors in that market in the last couple of years despite heightened tensions between the world’s two-largest economies. ![]() In a sign of challenges for ride-hailing firms to list in Hong Kong, Didi’s smaller domestic rival Dida Inc filed for an IPO in the city last October and has been fielding several queries from the exchange, said a seventh source. Hong Kong stock exchange operator HKEX declined to comment on the possibility of a Didi listing on its platform. Back then, Didi responded by launching a campaign to improve safety for passengers.Īnother advantage Didi sees in a New York IPO is a more predictable listing pace and a deeper pool of capital, a sixth source said, adding that the IPO could happen as soon as the second quarter. Shanghai authorities fined Didi for using unlicensed vehicles multiple times in 2019. Two of them said the preference for New York as a listing venue partly reflects concerns that a Hong Kong IPO application could run into tighter regulatory scrutiny over Didi’s business practices, including the use of unlicensed vehicles and part-time drivers. The sources declined to be identified as the information is confidential. Beijing-based Didi said it doesn’t have a definite plan regarding its listing destination or timeline.
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