Logistics start-up GoGoX steps up Hong Kong IPO plan with investor education process after receiving HKEX approval
- GoGoX, which operates under the Kuaigou Dache brand in China, is gauging investor demand for its IPO
- The loss-making company is reportedly seeking up to US$500 million from its IPO
GoGoX, an Asian app-based logistics services provider, has started an investor education process for its initial public offering, according to a source familiar with the transaction. The IPO is reportedly targeting between US$400 million and US$500 million.
The loss-making start-up updated its preliminary prospectus on the Hong Kong Exchanges and Clearing’s website on Sunday after getting approval for its listing plan late last week, the source said, who is not authorised to speak publicly about the deal. The news was reported earlier by other mainland media on Monday.
“We incurred [a] net loss … because our intracity logistics business is at its early stage and we have made substantial investments to drive the growth of our business,” the company said in the preliminary prospectus.
GoGoX, which operates under the brand name Kuaigou Dache on the mainland, expects to remain loss-making up to 2024, it said in the document. For the nine months ended September 2021, GoGoX’s net loss stood at 392.8 million yuan (US$61.8 million).
The joint sponsors of the deal are CICC, UBS, Bocom International and ABC International. They were not immediately available for comment on Monday.