Ucar approved for NEEQ listing
Car-hailing app becomes first of its type to list on New Third Board
Ucar Inc, a car-hailing app launched by Hong Kong-listed China Auto Rental (Car Inc), the country’s leading car rental site, is going to become the first of its kind to be listed on China’s National Equities Exchange and Quotations (NEEQ), over-the-counter stock market.
The NEEQ, dubbed the New Third Board, approved Ucar’s application on Monday, Xinhua reported. Investors will be able to trade its shares through market makers, with a launch date yet to be announced.
“Ucar must be very very cash-strapped after the cutthroat competition with its rival Didi Chuxing and Uber,” said Ray Zhao, an analyst with Guotai Junan Securities.
“They may have run out of money, or at least, listing on the Third Board will make its financial position easier and cheaper, which is vital to survive,” he added.
They may have run out of money, or at least, listing on the Third Board will make its financial position easier and cheaper, which is vital to survive
Car-hailing apps are spending billions of yuan on subsidising drivers to gain market share, but local authorities across China remain unclear on the rules to regulate the fast-growing ride-hailing market, after claims that their subsidy-led business models breach competition rules.
According to Beijing-based consultancy Analysys International, Didi Chuxing, Uber and Ucar rank as mainland China’s top three operators last year, with market shares of 80, 12.5 and 7.8 per cent respectively.