Tencent-backed Tuhu to move planned US IPO to Hong Kong

HONG KONG (BLOOMBERG) - A Chinese online car-services platform backed by investors including Goldman Sachs Group and Tencent Holdings is shifting its proposed initial public offering (IPO) to Hong Kong from the United States, people with knowledge of the matter said.

The start-up, which is formally known as Shanghai Lantu Information Technology Holding, is working with China International Capital Corp and Goldman Sachs on the offering that could raise US$300 million to US$400 million (S$408 million to S$544 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.

Tuhu joins a slew of Chinese companies that are choosing to list in the Asian financial hub instead of the US after Beijing cracked down on overseas listings over data security concerns and American regulators started pushing for better risk disclosures.

Lalamove, a logistics firm, and Meicai, which connects restaurants with vegetable producers, are among those rerouting their IPOs to Hong Kong, Bloomberg News has reported.

Started in Shanghai in 2011, Tuhu has become one of the major players in China's highly fragmented automotive after-market sector. Its online platform offers services such as tyre 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 (S$2.1 billion) in the previous 12 months.

Tuhu raised US$450 million in 2018 in a funding round led by investors including Tencent, Carlyle Group and Sequoia Capital, according to a company statement. It also counts Baidu among its early backers. The company was seeking a valuation of US$4 billion earlier this year, Bloomberg News reported at the time.