China’s new IPO rules could hinder the plans of some Chinese companies hoping to raise funds in the US. Several have already reportedly put their listing plans on hold in response to the crackdown.

China’s State Council said late on Tuesday it would undertake a sweeping overhaul of its regulations on how companies raise capital both domestically and overseas, which could stymie the efforts of high-flying technology companies to access the American capital markets.

That came just days after the Cyberspace Administration of China (CAC) said it was conducting a review of Chinese ride-hailing giant Didi Chuxing’s data collection policies on “national security” grounds and would carry out similar reviews of several Chinese tech companies that recently listed in the US.

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Here are 10 companies that plan to list in the US and could be affected.

LinkDoc Technology

Alibaba Health-backed medical data company LinkDoc Technology hopes to raise up to US$211 million in its IPO on the New York Stock Exchange, according to its filing on June 14.

Reuters reported on Thursday that the firm had shelved its listing plans in the US because of Beijing’s clampdown on overseas listings by domestic firms, citing three unnamed sources. The company was due to price its shares after the US market close on Thursday.

LinkDoc has the largest online oncology physician and patient engagement community in China, according to Frost & Sullivan. The oncology big data services provider has collaborated with over 330 hospitals, has over 39,000 registered physicians on its platforms and had cared for more than 3.5 million patients as of March 31.

The company declined to comment.

Daojia

Beijing-based home cleaning services firm Daojia made a filing to the US Securities and Exchange Commission last Friday.

Daojia is the largest home services platform in China in terms of gross transaction volume in 2020, according to iResearch.

Daojia, which means “to home” in Chinese, has over 30 million service providers caring for hundreds of millions of families in China, according to its prospectus. The platform provides multiple services, from maternity nurses, nannies and housekeeping, to training services and software-based solutions.

It did not respond to requests for comment about whether it would delay its listing.

Spark Education (Huohua Siwei), which provides online education for K-12 students in China, filed for an IPO on the Nasdaq on June 21. Photo:Weibo alt=Spark Education (Huohua Siwei), which provides online education for K-12 students in China, filed for an IPO on the Nasdaq on June 21. Photo:Weibo

Spark Education (Huohua Siwei)

Tencent-backed Spark Education, which provides online education for K-12 students in China, filed for an IPO on the Nasdaq on June 21.

The education provider, also known as Huohua Siwei in China, is the country’s largest online small-class education company in terms of gross billings in 2020 and the number of students as of December 31, according to research firm China Insights Industry Consultancy.

The company did not respond to requests for comments.

Golden Sun Education Group

Private education services provider Golden Sun Education Group filed for an IPO on May 7, and could raise US$22.5 million in proceeds, according to Refinitiv.

Established in 1997 and headquartered in Shanghai, Golden Sun Education operates a premium primary private school and secondary private school, three tutorial centres for children and adults, one educational company that partners with high schools to offer language classes, and one logistics company that provides logistic services to its schools and tutorial centres.

The company did not immediately respond to requests for comment.

Atour Lifestyle Holdings

Atour Lifestyle Holdings, a Chinese lifestyle brand and hotel operator under the Yaduo brand name, filed to go public on June 8, and could generate proceeds of US$286.3 million, according to Refinitiv.

The company told the Post on Wednesday that its US listing remains in progress.

Atour is the largest upper- to mid-range hotel chain in China in terms of room numbers as of the end of 2020, according to Frost & Sullivan.

Atour had a network covering 608 hotels across 131 cities in China, with a total of 71,121 rooms, as of the end of March. It also has a pipeline of 299 hotels with a total of 32,825 rooms under development.

Aspire Global Vaping brand Aspire Global filed for a US listing on June 22, with estimated proceeds of US$161.1 million, according to Refinitiv.

The Shenzhen-headquartered firm’s tobacco vaping products are sold through a network of more than 150 distributors in 30 countries. In December, Aspire began marketing its cannabis vaping technology products in the United States.

Aspire did not immediately respond to requests for comment.

Soulgate

Tencent-backed social networking app Soulgate filed for a listing in the US on May 10.

On June 23, the Shanghai-based company told Reuters it was halting plans for the IPO after it received other offers to raise capital.

The company operates the Soul social app, which allows users to create brand new identities in a “metaverse that defies the traditional boundaries of social networking and games”, according to its prospectus. The app had 9.1 million daily average users in March, of which 73.9 per cent were born in or after 1990. Tencent owns a 49.9 per cent stake in the company.

The company did not respond to requests for comment from the Post.

Qiniu

Cloud computing company Qiniu filed to go public in the US on April 30. Refinitiv estimates the company could generate proceeds of US$100 million from the filing.

Bloomberg reported in May that the cloud services provider had put its listing on hold after gauging investor interest, citing people familiar with the matter.

The platform provides end-to-end media and machine data analytics solutions. Qiniu was China’s largest pure-play platform-as-a-service provider by revenue in 2020, according to Frost & Sullivan.

The company did not respond to requests for comment.

Hello Inc

Alibaba Group Holding-backed bike rental company Hello filed to go public in the US on April 23. Refinitiv estimates the company could raise US$100 million in proceeds.

Bloomberg reported in May that the firm had delayed its listing amid rising investor caution about new shares.

Hello, also called Hello TransTech, offers a bike-sharing platform and electric scooters for sale. The company is the largest shared two-wheeler service provider in China by the number of total rides in 2020, according to iResearch.

The company declined to comment.

Ximalaya

Online podcast and radio services start-up Ximalaya filed for a listing in the US on April 30, with estimated proceeds of US$100 million according to Refinitiv.

Bloomberg reported in May that the podcaster had postponed plans to take orders from investors.

Ximalaya is the largest online audio platform in China in terms of average monthly users, total mobile listening time, and total revenues in 2020, according to CIC.

The company did not respond to requests for comment.

Additional reporting by Chad Bray

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2021 South China Morning Post Publishers Ltd. All rights reserved.

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