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

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 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 GOOG GOOGL and SoftBank Group Corp’s SFTBY 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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