![]() Chinese companies in need of capital have long headed to the U.S. Ximalaya drops US IPO plan amid China's crackdown on overseas listing Septem3:59 pm Chinese companies have raised about US13 billion through first-time share sales in the US this year, Bloomberg data showed. Stock market to tap deep-pocketed investors, raising more than 100 billion in first-time share sales over the past two. Thursday, Ximalaya, one of China's most prominent audio streaming platforms backed by Tencent, said it will drop its IPO plan in the United States filed in April.ĭidi’s IPO was the second largest US listing by a Chinese firm on record, after Alibaba Group Holding Ltd’s () US25 billion blockbuster debut in 2014. LinkDoc was expected to raise up to 211 million on the Nasdaq. Ximalaya has previously suspended its IPO plan after DiDi's disastrous IPO in July. It was the second-largest Chinese IPO in the U.S. pipeline among firms that had already filed to list, according to Refinitiv data. It is the first Chinese firm known to have pulled back from IPO plans since China's cybersecurity regulator toughened its approach to oversight last week with an investigation into ride-hailing giant Didi Global Inc just two days after its New York debut. Amid a cybersecurity probe, Chinese authorities have pressured Ximalaya to drop its U.S. That was soon followed with an order for Didi's app be removed from app stores. /rebates/&252fsources-chinabased-keep-linkdoc-us-ipotimes. IPO plan and list in Hong Kong instead since May. Under pressure from regulators and distrust from investors, many Chinese companies such as Xiaohongshu, a social commerce platform backed by Alibaba and Tencent Keep, a fitness app backed by Tencent and Ximalaya, have either dropped or suspended their U.S. IPO plans since July.Īccording to Reuters, China is currently framing new regulations to ban IPOs outside of the country for tech companies with data security risks. Yet the pressure for Chinese tech companies doesn't stop there - the U.S. Securities and Exchange Commission is also issuing new disclosure requirements, asking Chinese companies to reveal their use of variable interest entities (VIEs) to investors. ![]() LinkDoc Technology Limited, a medical data platform company backed by Alibaba, was the first to scrape its IPO plan in the U.S. ![]() What will happen to the roughly half-dozen Chinese IPOs that got yanked from New York earlier this year amid growing pressure from both Washington and Beijing? Company could be valued at a relatively high level due to its dominant position with more than two-thirds of the Chinese podcast market.Ximalaya’s ditching of its New York listing plan in favor of Hong Kong could mark the start of a new trend for Chinese tech firms that previously favored the U.S.LinkDoc Technology is now planning to lead a $200 to $300 million financing round before its upcoming IPO in Hong Kong, according to Bloomberg. It’s quite likely many could end up floating up closer to home in Hong Kong or even on the Chinese mainland itself. That’s what’s happening at leading podcast platform Ximalaya Inc., which filed this week to list shares in Hong Kong after informing the U.S. ![]() securities regulator it was officially abandoning its original New York listing plan first announced in March. Ximalaya was reportedly pressured to forgo a New York IPO by officials from China, who want more such leading tech names to list closer to home. was discouraging New York listings by Chinese firms, saying most used a complex and controversial corporate structure whose risks weren’t sufficiently understood by American investors. The bottom line was that Ximalaya was one of about a half dozen Chinese firms to file for U.S. ![]() listings this year, only to see those plans stall. Others that followed a similar path include shared bike operator Hello Inc., medical data firm LinkDoc Technology and online dating platform Soulgate, the last two of which each provided some high drama with 11th-hour scrappings of their trading debuts. Hong Kong does seem like a good compromise for many of these companies, since its financial markets are quite international and are also increasingly open to mainland Chinese investors.īeijing would also like to see many of these tech companies list on two Nasdaq-style boards on the mainland, one in Shanghai and the other in Shenzhen. ![]()
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