listing since a Chinese regulator announced national security and cybersecurity probes of three freshly listed Chinese technology firms this month, including ride-hailing giant Didi. LinkDoc is the first company known to have pulled out of a U.S. IPO as the fallout from China’s crackdown on data-rich companies listing overseas continues.Ī spokesperson for Tiger Brokers, one of the underwriters of the Linkdoc deal, confirmed the listing had been suspended, telling Caixin that Tiger customers who had signed up to buy the shares had been notified. Atour Lifestyle Holdings is the top company in terms of expected proceeds the group operates a network of 608 mid- to upper-range hotels in 131 cities across China.Alibaba-backed medical data firm LinkDoc Technology Ltd. Those companies will need to secure “blessing and approval from key Internet regulators before moving forward,” Chucheng Feng, partner at Beijing-based consultancy Plenum.ai, told Fortune on Wednesday.įive of these 17 firms are expected to rake in IPO proceeds of $100 million or more, according to Refinitiv data. this year remain in the pipeline, according to Refinitiv. “They need to be assured that what happened to Didi won’t happen to them,” said Protiviti’s Pang.Įven with the five delays, 17 Chinese firms that filed to list in the U.S. “Companies now feel vulnerable and exposed to different risks, including potentially damaging investor interests,” says Bruce Pang, head of macro and strategy research at China Renaissance Securities. As of Thursday, Didi had lost roughly $14 billion in value since it listed. The company is now trading at $11.21 per share, 21% below its offer price. “The companies are likely buying time to ensure that they’ve done enough due diligence that is required in this new Data Security Law era,” says Michael Pang, managing director at consulting firm Protiviti.Īnother concern is investor sentiment, given how badly Beijing’s surprise actions have hurt Didi’s stock. The string of shelved listings may indicate that companies are putting off IPOs until they better understand Beijing’s new regulatory scheme, including the State Council’s Tuesday directive on “illegal securities activities,” which the body has yet to clarify. Soulgate cited “alternative financing options” as the reason for yanking its IPO. Bike-sharing app Hello and dating platform Soulgate both scrapped their Nasdaq listing plans in late June the companies were aiming to raise $100 million and $198 million, respectively. Ximalaya hasn’t filed to list in Hong Kong.Ĭhina’s most popular fitness app, Keep, which operates under parent group Beijing Calories Technology, was eyeing a $500 million NYSE listing, but didn’t follow through on the debut that was supposed to take place this week, the FT reports. The Shanghai company was set to list in New York as early as May but was pressured by regulators, including the CAC, to debut in the Asian financial hub instead, according to Reuters. Podcast and radio platform Ximalaya dropped its NYSE listing plans in recent weeks after discussions with regulators yielded an understanding that “a Hong Kong listing would be regarded as a preferred outcome,” a source told the Financial Times. None of the five companies replied to Fortune’s request for comment. The value of the five shelved IPOs exceeds $1.4 billion, according to Refinitiv data. last month.Īll five companies that have delayed their IPOs operate high-tech app platforms that accumulate, store, and deploy important consumer data, from health to lifestyle to location information-exactly the kind of troves Beijing wants to protect. The two companies went public in the U.S. The CAC announced on Monday two more probes, into Full Truck Alliance, known as China’s “ Uber for trucks,” and job recruitment platform Boss Zhipin, citing similar issues. Last week, the Cyberspace Administration of China (CAC) announced an investigation into Didi over data and national security concerns, two days after the ride-hailing giant raised $4.4 billion in an IPO on the New York Stock Exchange (NYSE). LinkDoc’s delay was the first sign that Beijing’s clampdown on Chinese companies’ overseas listings is stalling the parade of firms readying IPOs in the U.S. The Beijing-based company pulled the listing because of Beijing’s regulatory crackdown, says Reuters. pipeline among firms that had already filed to list, according to Refinitiv data. It was the second-largest Chinese IPO in the U.S. LinkDoc was expected to raise up to $211 million on the Nasdaq. Medical data platform LinkDoc Technology shelved its IPO plans on Thursday, becoming the first company to axe its debut after China announced stricter supervision on overseas listings, Bloomberg reports.
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