Keep, now adds to the already long list of Chinese companies to cancel US IPO plans. A source close to the company speaking on that turn of the event stated that “After communication with the relevant regulators, Ximalaya understands that a Hong Kong listing would be a much better and preferred outcome.”Ĭhinese medical data solutions provider, LinkDoc Technology, earlier this week canceled its Nasdaq IPO plans this week.Ĭhina’s biggest podcasting platform, Ximalaya, earlier last month also canceled its US IPO plans. According to reports, LinkDoc Technology was expected to price its shares on Thursday and was expected to raise a figure of over $200 million expected. The Chines fitness app and SoftBank however declined to comment on the alleged foiled IPO plans. This development is the latest blow for SoftBank, which holds a 20% stake in Didi, making it the largest shareholder. Shares of the Japanese bank shares fell 5% yesterday after news of China regulators investigating, stopping new registrations to its app in the process.
#SOURCES DIDI KEEP LINKDOC FULL#
The bank is also an investor in Full Truck Alliance, another US-listed tech company under investigation by the Chinese data watchdog.HONG KONG - Chinese medical data group LinkDoc Technology Ltd has shelved plans for an IPO in the United States following Beijing's clampdown on overseas listings by domestic firms, according to three sources with direct knowledge of the matter.
“Instead of finance or securities regulators, the CAC will lead the review process of Chinese companies’ overseas IPOs,” said Shen Meng, director of Beijing-based boutique investment bank Chanson and Co, completing his initial public offering before receiving regulatory approval, and “this is clearly not allowed “.It is the first known Chinese firm to pull back from its IPO plans since the crackdown began last week with an investigation by China's cybersecurity regulator into ride-hailing giant Didi Global Inc just two days after it made its New York debut.īeijing said on Tuesday that it would strengthen supervision of all Chinese firms listed offshore, a sweeping regulatory shift that triggered a sell-off in U.S.-listed Chinese stocks. In response, several Chinese companies, including fitness app Keep and medical data company LinkDoc, have put plans for listing in the US on hold CAC announced a proposal last week that any company with data from more than 1 million users must complete a security clearance before listing overseas. Meanwhile, China is also drastically tightening the screening process for companies wanting to list their stocks overseas.
#SOURCES DIDI KEEP LINKDOC SERIES#
Still, the company’s shares are already down more than 10% below the $ 14 IPO price, leading to a series of class action lawsuits alleging that Didi published false and misleading information and failed to disclose the potential cybersecurity investigations. Didi told the newspaper that “prior to going public, it was unaware of the regulator’s decisions to subject the company to cybersecurity reviews and prohibit new downloads of its ride-hailing app.” They had previously proposed postponing its IPO and asked the company to review its network security to protect its users’ data, according to a Wall Street Journal Report citing anonymous sources. Shortly after the $ 4.4 billion IPO in New York City, Chinese regulators ordered the removal of all 25 of the company’s apps from app stores and new user registrations were suspended.Ĭhina’s cybersecurity regulators have been investigating Didi since the beginning of this month. The last few weeks have been turbulent for Didi.
Zhu Wei, a professor at China University of Political Science and Law, says the investigation could take months as regulators investigate Didi’s operations to ensure his data is kept safe. The company did not immediately respond to an email request for comments. No mention was made of how long the investigation would take or what penalties Didi might face. The Cyberspace Administration of China (CAC) said in a brief notice posted on its website that other government departments including the Ministry of Public Security, the Ministry of Transportation and the Ministry of Natural Resources would be jointly stationed at the Beijing-based company, such as they carry out their probe. Didi’s headquarters in Xisanqi, Haidian District, Beijing, China on August 2020.Ĭostfoto / Barcroft Media via Getty Imagesīeijing is stepping up its review of ridesharing giant Didi Global, announcing on Friday that seven government departments have jointly launched an on-site cybersecurity investigation against the company.
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