LianLian applies to revive its Hong Kong IPO as Ant Group’s rival takes a second stab at raising funds
- The Hangzhou-based company, which had reportedly sought to raise US$500 million last June, said it would use the IPO proceeds to enhance its technological capabilities
- The 15-year-old company also wants to expand its global business operations over the next five years
LianLian DigiTech has applied to revive its initial public offering (IPO) in Hong Kong, as the provider of cashless payment services and competitor to Ant Group takes a second stab at raising funds.
The Hangzhou-based company, which had reportedly sought to raise US$500 million last June, said it would use the proceeds from the IPO to enhance its technological capabilities and to expand its global business operations over the next five years, according to a filing to the Hong Kong stock exchange.
The 15-year-old company did not divulge the amount it is seeking to raise. Bankers expect the haul to be less than the amount previously sought because of the current draught in fundraising and market slump.
LianLian has raised funds through several funding rounds from Boyu Jingtai, Everbright Investment, China International Capital Corp (CICC), Sequoia Zhensheng and other investors. CICC and JPMorgan Chase are the sponsors and the overall coordinators for the IPO.
It’s a challenge for Hong Kong’s market to support an IPO this size, said a banker in the city who is uninvolved in the deal, declined to be named.