Bloomberg reported that Meihua International Medical Technologies Co., a medical equipment business, has become the first Chinese company to list in the United States since Didi Global Inc.’s IPO prompted a regulatory reaction in July.

According to an announcement, Meihua raised $36 million on Wednesday by selling 3.6 million shares for $10, a lower number than previously proposed. It sold up to 5 million shares for $9 to $11 each. Meihua’s market value reached $236 million at the IPO price based on the outstanding shares it registered with the U.S. Securities and Exchange Commission (SEC).

Meihua’s offering did well on Wednesday. Its shares began trading at $10 and ended at $12.92, up 29%. However, the stock dropped by 30% on Thursday, erasing gains the Chinese medical products company made following its downsized initial public offering on Wednesday.

A successful IPO from Meihua would break the deadlock for Chinese companies looking to go public in the United States. In June, ride-hailing operator Didi raised $4.44 billion in an IPO over the objections of Chinese regulators.

However, China’s authorities opened an investigation into the firm and restricted its operations, wiping out more than $1 trillion of its market value.

According to Bloomberg, in an attempt to prevent the flow of sensitive data, the Chinese regime has carried out new rules tightening inspection on companies that list overseas. After the SEC stopped Chinese company listings, many companies redirected their planned IPOs to Hong Kong. According to data collected by Bloomberg, the only successful U.S. offerings since Didi have been a small Chinese startup that appeared in early July and four Hong Kong-based special purpose acquisition companies.

In December, DiDi announced that it would delist from the New York Stock Exchange and move to the Hong Kong stock exchange.

According to the filing, Number Capital LLC, Shengang Securities Co., Revere Securities LLC, and R.F. Lafferty & Co. arranged the IPO for Meihua. Its shares trade on the Nasdaq Global Market with the symbol MHUA.

Chinese companies made up most of the top 10 biggest IPOs in 2021. Kuaishou, the biggest rival of video-sharing platform ByteDance, raised $6.23 billion in its Hong Kong debut in February. J.D. Logistics, which raised $5.4 billion in late January, has become one of the biggest deals in Hong Kong. China Three Gorges Renewables Group raised $3.5 billion in its initial launch in Shanghai in May.


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