Geely-backed ride-hailing firm Cao Cao Mobility said to pick three banks for Hong Kong IPO plan
- Cao Cao is a smaller rival to Didi Global and is backed by auto tycoon Li Shufu of Zhejiang Geely group
- Firm is said to have picked investment banks ABC, Bank of America and Huatai to help prepare for its listing as soon as April next year
The company is working with ABC International Holdings, Bank of America and Huatai International on the first-time share sale, the people said. The IPO could happen as soon as next year, the people said, asking not to be identified as the information is private.
Cao Cao is looking to file its preliminary prospectus as soon as April once it has the full-year financial results for 2022, according to one of the people.
Deliberations are ongoing and details such as the fundraising amount and bank line-up could still change, the people said. Representatives for Bank of America, Geely and Huatai declined to comment, while a representative for ABC International did not immediately respond to requests for comment.
Cao Cao, a smaller rival to Didi Global in China’s ride-hailing market, uses its own fleet of vehicles and taxis, and its services include concierge and car rental, according to Geely’s website. They are available in 62 cities in China, including Hangzhou, Beijing, Shanghai, Guangzhou and Shenzhen.
The company launched its chauffeur service platform in Paris in 2020.
The firm was established in 2015 and raised 1 billion yuan (US$143 million) three years later in a series A funding round that valued it at more than 10 billion yuan, its website shows. It raised another 3.8 billion yuan last year in a series B round from investors including Suzhou Xiangcheng Financial Holding Group.
Cao Cao is a warrior character taken from the classic Chinese literature “The Romance of Three Kingdoms.” The famous Chinese proverb “Shuo Cao Cao, Cao Cao dao” was derived from the same novel, meaning “one speaks of Cao Cao, he will arrive right away.”
Zhejiang Geely, the private flagship of tycoon Li Shufu, controls Hong Kong-listed Geely Auto and also a stable of foreign carmakers including Volvo, Lotus and Proton.
Meanwhile, Beijing-based Sunshine Insurance Group was said to be leaning toward pricing its Hong Kong IPO at the bottom of its marketed range, people familiar with the matter said on Monday. At HK$5.83 apiece, the firm could raise about HK$6.7 billion ($863 million).
The insurer had marketed shares at HK$5.83 to HK$6.45 apiece. Deliberations are ongoing, the price could still change and no final decisions have been made, the people said. An external representative for Sunshine did not immediately respond to a request for comment.
Additional reporting by SCMP Reporter
