China's 'Uber For Trucks' Startup Proposes To Raise About $1.6B In US IPO: WSJ

·2 min read

Chinese truck startup, Full Truck Alliance Co or Manbang Group aims to raise to $1.57 billion from its U.S. initial public offering (IPO), the Wall Street Journal reported.

What Happened: Manbang provides an Uber Technologies Inc (NYSE: UBER)-like service via a mobile app connecting truck drivers to businesses to transport goods within China.

The startup is selling 82.5 million ADRs at a price between $17 - $19. Invesco and Fidelity International have expressed interest in buying up to $50 million - $100 million of stock, respectively.

The final IPO size could increase by 15% on the overallotment exercise option. The company plans to price its shares on Monday.

Significant investors in the startup include Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) and SoftBank Group Corp’s (OTC: SFTBY) (OTC: SFTBF) Vision Fund.

The indicative price range for the IPO implies a market value between $18.5 billion - $20.6 billion. The stock will trade on the NYSE.

Why It Matters: Previously, the WSJ reported that the company aimed to raise at least $1 billion at a valuation between $20 billion - $30 billion.

The company is raising another $200 million by privately selling $100 million of stock to two big investors, the Ontario Teachers’ Pension Plan and a unit of Mubadala, the Abu Dhabi sovereign-wealth fund.

Last week, ride-hailing giant Didi Chuxing Technology Co filed for a U.S. listing, which could give the company a valuation above $70 billion.

Chinese companies have raised $5.9 billion from U.S. IPOs in 2021. The Didi and Full Truck listings could push the haul above 2020’s full-year total of $13.6 billion.

Earlier this month, President Biden expanded a prohibition on Americans investing in Chinese companies with purported links to China’s military.

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