Chinese courier firm BingEx valued at nearly $1.2 billion in US IPO
6:45 am Friday, October 04th, 2024
(Reuters) – China’s BingEx said on Friday it had raised $66 million in its U.S. initial public offering valuing the courier delivery firm at $1.17 billion, signaling a recovery in investors’ risk appetite and easing regulatory hurdles.
The company, which brands its services as FlashEx, sold 4 million American depositary shares (ADS) in the offering priced at $16.50 each. It had aimed to sell shares at a range between $15 and $17.
The IPO bodes well for the broader market which had been depressed for almost two years due to higher-for-longer interest rates and turmoil in the stock markets.
The recent searing rally in equities and the start of the U.S. Federal Reserve’s monetary policy easing cycle has lifted sentiment. Analysts expect appetite for riskier investments will continue to improve next year, boosting the IPO market meaningfully in 2025.
BingEx operated in 295 Chinese cities with more than 2.7 million registered riders, as of June 30. It controlled 33.9% of the country’s independent on-demand dedicated courier service market, the company said in its IPO prospectus citing data from iResearch.
The number of Chinese companies that have pursued stock market flotations in the United States has dropped in the past few years, after Beijing clamped down on offshore capital raising in 2021.
EV maker Zeekr’s debut on the New York Stock Exchange earlier this year was the first big listing by a Chinese company in the U.S. since ride-hailing giant Didi Global was forced to delist its shares in late 2021 following a backlash from Chinese regulators.
BingEx’s ADS are expected to start trading on the Nasdaq under the ticker symbol “FLX” later on Friday.
Deutsche Bank Securities, CICC and CLSA are the lead underwriters for the offering.
(Reporting by Manya Saini in Bengaluru; Editing by Shounak Dasgupta)
