Full Truck, China’s “Uber for Trucks” to Raise US $ 1.57 Billion on the Stock Exchange
Full Truck Alliance, a Chinese service similar to Uber Technologies that connects freight forwarders and truck drivers, plans to raise up to US $ 1.57 billion in initial public offering (IPO) in the USA.
The Guiyang-based company, which counts SoftBank Group’s Vision Fund and Tencent as investors, said it plans to sell 82.5 million shares at a price of between US $ 17 and US $ 19 on the New Stock Exchange. York (NYSE) under the symbol YMM, according to a regulatory filing with the United States Securities and Exchange Commission.
Full Truck said it is the world’s largest digital freight platform, with 173.8 billion yuan ($ 27.1 billion) in gross transaction value of goods and 71.7 million orders shipped through its platform last year, according to its prospectus. The company said about 20% of all heavy and medium truck drivers in China fulfilled orders on its platform last year, with more than 2.8 million truckers using its service. The platform covers more than 300 cities in China, he added.
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The company, which markets itself as Manbang in China, was born out of the merger of the Yunmanman and Huochebang truck reservation platforms in 2017.
Following the IPO and simultaneous private placement of shares, Peter Hui Zhang, founder and CEO of the company, will own 83.4% of the voting rights of the issued and outstanding shares of the company.
Full Truck is in an early stage of monetization, generating revenue primarily from membership fees, freight brokerage, and other services. It said 2020 revenue of 2.6 billion yuan, an increase of 4% from the 2.5 billion yuan generated in 2019, but remains a losing company. The company reported a net loss of 3.5 billion yuan in 2020, after recording a loss of 1.5 billion yuan the previous year.
In the first three months of this year, Full Truck recorded a net loss of 63.3 million yuan.
The underwriters of the transaction include Morgan Stanley, China International Capital Corporation, Goldman Sachs, UBS, Huatai Securities, Citigroup and Nomura.
Full Truck’s IPO follows a slew of Chinese tech companies that traveled to the United States in the second quarter of this year to raise funds. This happened despite escalating US-China tensions after US President Joe Biden increased the number of Chinese tech companies blacklisted to 59 this month.
Companies raising funds in the United States include Didi Chuxing, the country’s largest ridesharing platform, which filed for an IPO in New York last week. Its fundraising is expected to reach several billion dollars.
Two other Chinese online grocery platforms, Tencent-backed Missfresh and Tiger Global Management-backed Dingdong Maicai, are targeting around $ 500 million each, according to people familiar with the transactions, on the Nasdaq and NYSE, respectively.
Others are waiting behind the scenes, including AiHuiShou International, which claims to be the largest second-hand consumer electronics services platform in China. It has filed a US $ 280 million IPO application on the NYSE.
Transactions by Chinese issuers helped the Nasdaq and the NYSE raise a total of US $ 23.8 billion from 69 IPOs between early March and June 15, according to data from Refinitiv. These transactions have already exceeded the US $ 17 billion raised in 40 IPOs for the second quarter of 2020.
Hong Kong, on the other hand, looks set to end the quarter lagging behind the US stock markets. Only eight IPOs had raised US $ 6 billion for the three-month period until June 15, the lowest amount raised since the first quarter of 2020, when the Covid-19 pandemic began to impact new sales of shares in the city, according to data from Refinitiv.
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