China’s FTA makes a strong debut on the NYSE with a valuation of more than 24,000 million dollars
The company, which calls itself “Uber for Trucks”, joins a list of Chinese companies turning to US markets to access the world’s largest capital pool and avoid stricter regulatory scrutiny in major Asian exchanges, such as Hong Kong.
The company’s “American Depositary Shares” (ADS), each of which represents 20 Class A common shares deposited with a US bank Being a company incorporated abroad, they opened at $ 22.50 each, compared to their offer price of $ 19, . reports.
Backed by high-level investors such as SoftBank’s Vision Fund and Tencent Holdings, the company runs a mobile application that connects truckers with people who need to ship items within China.
FTA, popularly called Manbang in its domestic market, raised nearly $ 1.6 billion on Tuesday by offering 82.5 million ADSs on its debut, priced above the previously announced range.
This amount is expected to be surpassed by China’s largest trucking company, Didi Chuxing, which could raise as much as $ 10 billion in its gigantic stock sale scheduled for this year.
FTA will also raise a total of $ 200 million from Abu Dhabi state investor Mubadala and the Ontario Teachers’ Pension Plan Board. through the sale of class A ordinary shares.
The company was formed in 2017 from a merger between Chinese digital freight platforms Yunmanman and Huochebang. It is led by Peter Zhang, a former executive at Chinese e-commerce giant Alibaba.