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Dada Nexus, an on-demand retail platform backed by Walmart and one of China’s biggest e-commerce players JD.Com, has more than doubled the target for its initial public offering on the Nasdaq to USD264 Million and could be the first Chinese firm to list in the US under its new law governing foreign companies looking to go public.
The Shanghai-based firm will offer 16.5 million American depositary shares at a price of between USD15 and USD17, according to its updated filing, published yesterday and valuing the firm at USD3.5 billion. It had originally aimed to raise USD100 million.
Dada is on track to become the first Chinese company to successfully listed in the US since the Senate passed the Holding Foreign Companies Accountable Act on May 20. The law requires certain issuers of securities to establish that they are not owned or controlled by a foreign government.
Dada is 10.8 percent owned by Walmart and 51.4 percent owned by JD, which is one of 156 Chinese companies listed in the US, according to a list the US-China Economic and Security Review Commission compiled in 2019.
The move suggests potential investors are optimistic about the company’s business prospects, one market analyst said, adding that the listing, as well as that of Kingsoft Cloud, could motivate more Chinese firms to pursue an IPO in the US.
Source: Yicai Global
