Tencent-backed car-services platform Tuhu to move planned IPO to Hong Kong from the US
- The start-up, which is also backed by Goldman Sachs, is the latest Chinese company to back away from IPO plans for the US in favour of the Asian financial hub
- Tuhu is looking to raise US$300 million to US$400 million amid a tough regulatory environment in China for internet platforms
The start-up, which is formally known as Shanghai Lantu Information Technology Holding Ltd, is working with China International Capital Corp and Goldman Sachs on the offering that could raise US$300 million to US$400 million this year, the people said, asking not to be identified as the information is private.
Deliberations are ongoing, and details such as timing and size could change, the people said. Representatives for Tuhu said they weren’t aware of a listing plan. Goldman Sachs and CICC declined to comment.
Started in Shanghai in 2011, Tuhu has become one of the major players in China’s highly fragmented automotive aftermarket sector. Its online platform offers services such as tire and battery replacement, as well as refurbishment, according to its website. In an interview last year, founder Chen Min expected 2021 revenue to jump at least 50 per cent from 10 billion yuan (US$1.6 billion) in the previous 12 months.
Tuhu raised US$450 million in 2018 in a funding round led by investors including Tencent, Carlyle Group Inc and Sequoia Capital, according to a company statement. It also counts Baidu Inc among its early backers. The company was seeking a valuation of US$4 billion earlier this year, Bloomberg News reported at the time.