China’s Dada Nexus targets US IPO amid Washington-Beijing tensions
- Online grocery firm is attempting listing on Nasdaq in hope of raising up to US$280.5 million
- Plan comes amid tighter restrictions from US lawmakers and stock exchange operators on flotations by Chinese firms going public in the United States
Chinese online grocery firm Dada Nexus said on Monday it aims to raise up to US$280.5 million in a US initial public offering, attempting a listing on New York’s Nasdaq at a time of deepening tensions between Washington and Beijing.
The company set a price range of US$15 to US$17 per American Depository Share for 16.5 million ADS in the IPO, which at the top end of this target would value the company at over US$3.7 billion.
Dada’s IPO plan comes amid tighter restrictions from US lawmakers and stock exchange operators on flotations by Chinese companies going public in the United States, in an effort to improve auditing standards and accounting transparency.
The company in its IPO filing flagged that potential US laws “could cause investor uncertainty for affected issuers, including us, and the market price of the ADSs could be adversely affected, and we could be delisted”.
The company had been aiming for an IPO of around US$500 million but pared back the plans in part due to the uncertain political environment, according to a person familiar with the matter.