![]() ![]() listing, they may have to wait for further clarification, stricter scrutiny and pre-approval from different regulators and authorities," said Bruce Pang, macro & strategy research head at China Renaissance Securities. "The new rules may impose long waiting periods on any companies hoping to list abroad which will hit investor sentiment, depress valuations for IPOs in the U.S. and make it more difficult to raise funds overseas," he said.īacked by Alibaba Health Information Technology Ltd, LinkDoc filed for its IPO last month and was due to price its shares after the U.S. ![]() It had planned to sell 10.8 million shares between $17.50 and $19.50 each. The book closed one day earlier than planned on Wednesday, one of the three sources and a separate person said. The sources declined to be identified as the information has not yet been made public. LinkDoc did not immediately respond to a request for comment. Morgan Stanley, Bank of America, and China International Capital Corp Ltd (CICC) were the investment banks on the deal and all declined to comment to Reuters. capital markets have been a lucrative source of funding for Chinese firms in the past decade, especially for technology companies looking to benchmark their valuations against listed peers there and tap an abundant liquidity pool. So far this year, a record $12.5 billion by Chinese firms has been raised from 34 U.S. Listings, Refinitiv data shows, well up from the $1.9 billion from 14 deals in the same period a year ago.Įight Chinese companies including home service platform Daojia Ltd and Atour Lifestyle Holdings have made public filings with the Securities and Exchange Commission (SEC) to list in the U.S. later this year, a review of the filings showed. In a series of events that began on Friday and intensified during the US holiday weekend, China's cybersecurity regulator began investigations into three companies that recently listed in New York - ride-hailing service Didi Global, Uber-like trucking startup Full Truck Alliance, and online-recruitment platform Kanzhun.The tougher stance by the Cybersecurity Administration of China has been driven in part by concerns that the United States could gain greater access to data owned by Chinese firms - similar to concerns that the previous Trump administration had voiced about Chinese firms operating in the United States. It was seen as raising as much as $211 million by selling 10.8 million shares priced between $17.50 and $19.50, Reuters reported, citing three sources with direct knowledge of the matter. LinkDoc, which filed for its IPO in June, was due to price its offering after the US market close on Thursday. On Tuesday, Chinese officials said they would step up scrutiny of cross-border data flow and sources of funding for securities investments, among other market-related measures. The tougher oversight is seen as President Xi Jinping seeking to control one of China's most treasured resources - big data. LinkDoc, which provides medical data and research to pharmaceutical clients, is the first Chinese company known to have set aside US IPO plans as regulators tighten their grip. Chinese medical-data company LinkDoc Technology has suspended its plans for an initial public offering in the US as Beijing cracks down on domestic companies with overseas listings, Reuters reported on Thursday.
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