Hotel chain Atour revives New York stock sale plan as Chinese companies resume their march to world’s largest capital market
- Shanghai-based Atour Lifestyle highlights risks from Chinese government influence and regulatory scrutiny on offshore listing as it seeks up to US$305 million
- Stricter US disclosure requirements and Chinese regulatory oversight following Didi’s IPO in June brought fundraising by mainland issuers to a standstill
Mainland hotel chain Atour Lifestyle Holdings has filed an updated prospectus for its US initial public offering, highlighting the risks from the Chinese government’s influence on its business and heightened cybersecurity scrutiny following more stringent disclosure requirements from US regulators.
Investors had initially indicated strong interest in Atour’s stock sale during its pre-marketing in June, but the IPO process had to be paused because of additional request for information from the Securities and Exchange Commission, according to a person familiar with the transaction, who was not authorised to speak publicly about the deal.
Shanghai-based consumer loan service provider Sentage Holdings’ US$20 million IPO in early July was the last before listings by Chinese issuers dried up, according to data from financial data provider Refinitiv. Chinese companies have raised US$24.5 billion on US exchanges so far this year.