In June 2021, Chinese ride hailing giant Didi and digital freight platform Full Truck Alliance made their debuts in the US amid the volatile initial public offering (IPO) environment.
July 09, 2021 | Wendy Weng- Didi’s $4.4 billion IPO is the second largest US listing by a Chinese company since 2010
- The regulations for the listing of Chinese companies on the US stock exchanges have been tightened
- Chinese regulators have heightened regulatory scrutiny of tech companies and will tighten rules on overseas listings
Among the top ten largest IPOs by Chinese companies on the US stock exchanges since 2010, five have taken place during the past year. Lufax, KE Holdings (Beike) and Xpeng were listed in the US in August 2020 and Full Truck Alliance and Didi Global went public in June 2021. In 2014, Alibaba Group raised $21.8 billion on the first day and garnered $25 billion after exercising the green-shoe option, making it the largest IPO of all time in the US. The top ten list includes four IPOs from companies in the consumer discretionary sector, three from the industries sector and one each from financials, communication services and real estate.
In the first half of 2021, the US saw an increase in IPO activity by Chinese companies, despite the tensions between the two countries and Washington's threat to delist companies that do not comply with US accounting rules. This was fuelled by abundant liquidity and low interest rates. There were 248 Chinese companies listed on major US stock exchanges as of 5 May 2021, up from 217 companies on 2 October 2020, according to the US-China Economic and Security Review Commission.
Didi's IPO on 30 June 2021 and Full Truck Alliance’s IPO on 22 June 2021 have come at a time when the US has been tightening the regulations for the listing of Chinese companies on the US stock exchanges, while Chinese regulators have also intensified the antitrust campaign. Didi raised $4.4 billion that valued the company at $68 billion. ...
Categories:
Keywords:
