VOA reported that more Chinese companies are gearing up for an initial public offering (IPO) on the New York Stock Exchange (NYSE) right after the Lunar New Year.
This move perhaps indicates that some Chinese companies ignored the reminders and warnings of Chinese regulators last year when they forced Didi Global Inc. to delist from the NYSE soon after its Wall Street debut.
Last year, the Beijing tech crackdown on Chinese firms listed offshore made Chinese businesses interested in listing in the United States undergo a freezing period of several months. However, it seems that there is hope for a recovery from the lifting of the ban.
Meihua International Medical Technologies, a company that distributes medical equipment globally, is set to list on the Nasdaq this week. According to data from the NYSE, the healthcare business is trying to raise $57.5 million.
Meihua International will also become the first Chinese company to list on Nasdaq since Lianbio, another Chinese company, raised $334 million in its Nasdaq IPO in October last year.
In addition to Meihua, smaller Chinese companies also restarted their Wall Street listings process mainly because they believe that these small companies are not the regulatory targets of Chinese regulators.
Reuters reported that at least six Chinese companies have filed documents to list in New York in recent weeks, based on filings accessed. Bankers with inside knowledge said the plans were for small initial public offerings, with financing ranging from $1 million to $35 million.
Ostin Technology Group, a Chinese micro-cap, seeks to raise up to $15 million through a Nasdaq offering in March.
On Jan. 18, insurance company Hengguang Holding Co filed a draft IPO prospectus with the Securities and Exchange Commission (SEC), indicating that it plans to raise up to $19.6 million through a Nasdaq listing later this year.
Chinese companies raised $12.8 billion on Wall Street in the first seven months of last year. However, efforts to list Chinese companies in the U.S. largely stalled in the second half of the year after Didi’s New York listing sparked discontent among Chinese regulatory authorities in late June.
Didi Global Inc., the Chinese leading ride-hailing giant, debuted on Wall Street in June 2021. Days after listing, Beijing probed the Chinese version of Uber and removed its services from Chinese app stores. Months later, the prominent ride-sharing provider stated that it planned to leave the NYSE and transfer to pursue a Hong Kong listing.
Reuters quoted a Hong Kong-based equity capital markets banker saying that some Chinese companies’ current application to list in New York does not mean that China’s supervision has been relaxed.
Several departments, including the Cyberspace Administration of China, recently released the “Cybersecurity Review Measures” and will implement the latest measures from Feb. 15. This regulatory measure requires that online platform operators with personal information of more than 1 million users go public abroad and must apply for a cybersecurity review.
At the end of last year, the China Securities Regulatory Commission publicly solicited opinions on the relevant systems and rules for an overseas listing. It claimed it would implement record-filing management for domestic companies’ direct and indirect overseas listing activities.