Data compiled by Renaissance that shows the Chinese Capital companies have conducted 30 initial public offerings (IPOs) in the United States this year, raising a total of $11.7 billion.
This is the highest funding record since 2014 when 16 Chinese companies went public in the United States and raised a total of US$25.7 billion.
Among them, Alibaba’s listing accounted for a large proportion of the total funds raised at that time, creating the largest IPO event that year. However, this analysis excludes special IPO situations, like reverse listings through special motive acquisition companies (SPACs) and best-effort underwriting (Best Effort) IPOs, and does not include companies that have raised less than US$5 million or have a market capitalization of less than US$50 million.
According to Renaissance Capital, Chinese companies listed in the United States this year include the financial technology company Lufax and the online real estate platform Shell Looking for Real Estate, both of which are among the top ten IPOs in the United States this year.
Wal-Mart’s investment in grocery delivery company Dada, electric car start-ups Xiaopeng and Ideal, and BlueCity, which owns China’s largest LGBTQ dating app, are all large companies listed in New York this year.
However, earlier this year, due to the outbreak of the pandemic and the exposure of the Ruixing Coffee accounting scandal, many Chinese companies postponed their plans to go public in the United States. In addition, Eggshell Apartments is the worst-performing IPO this year because investors are worried about its financial situation.
Renaissance Capital’s analysis found that completely, Chinese companies that have raised at least US$100 million this year have an average total return of 81%.
(Via)
