On October 4, 2024, China's BingEx announced it raised $66 million in its U.S. initial public offering (IPO), valuing the courier delivery firm at $1.17 billion. This development signals a recovery in investors' risk appetite and suggests easing regulatory hurdles for Chinese companies seeking to list in the U.S.
BingEx, which operates under the brand FlashEx, sold 4 million American depositary shares (ADS) priced at $16.50 each, within its target range of $15 to $17. This IPO is seen as a positive indicator for the broader market, which has faced challenges over the past two years due to prolonged high interest rates and stock market volatility.
The recent rally in equity markets, coupled with the initiation of the U.S. Federal Reserve's monetary policy easing cycle, has improved investor sentiment. Analysts predict that appetite for riskier investments will continue to grow, potentially revitalizing the IPO market significantly in 2025.
BingEx operates in 295 Chinese cities with over 2.7 million registered riders and controls 33.9% of China's independent on-demand dedicated courier service market, according to its IPO prospectus. The number of Chinese companies pursuing U.S. stock market listings has decreased in recent years, following stricter regulations from Beijing on offshore capital raising in 2021.
The company's ADS are set to begin trading on the Nasdaq under the ticker symbol 'FLX' soon after the announcement. Deutsche Bank Securities, CICC, and CLSA are the lead underwriters for this offering.
Source: Reuters, October 5, 2024.