TOKYO--(BUSINESS WIRE)--Tokyo based wealth management company, Akita Michinoku Capital, has reported that Dada Nexus Ltd., the JD.Com-backed crowd-sourced delivery platform with headquarters in China, has filed for what may be the second major U.S. initial public offering by a Chinese firm after the accounting fiasco at Luckin Coffee Inc casted a shadow on these such deals.
"The IPO could generate about $500 million, making it one of this years the largest U.S. IPOs by a Chinese company," reported Oliver Wright, Director of Corporate Equities at Akita Michinoku Capital.
Founded in 2014, the Shanghai-based business has reported sales of $518 million for the last financial year. It plans to list under the symbol DADA on the Nasdaq.
Dada Nexus operates the JD-Daojia and Dada Now retail and delivery platforms that connect motorcycle delivery workers with the merchants in hundreds of Chinese towns and cities.
"The filing comes a week after Kingsoft Cloud Holdings Ltd. generated $510 million in the biggest U.S. listing by a Chinese company so far this year," commented Martin Thornton, Head of Corporate Trading at Akita Michinoku Capital.
"This was the first major trading launch since Luckin Coffee was accused of accounts mishandling, once a poster-child for Chinese start-up companies, and saw its stock plunge," Martin added.
In the newest twist in the Luckin Coffee fiasco, on Wednesday, the coffee chain ousted its CEO and another top executive, an indication of growing turmoil at the former success story that was one of the highest-profile and best-performing Chinese IPOs in the U.S. just a few months ago.
Kingsoft Cloud shares have risen from the offer price by 43 per cent, a remarkable indication of progress for an asset class that has been marred by declining share prices over the past year. The result proves that the U.S. market remained open to Chinese businesses even though the two countries fight over the source of the coronavirus pandemic that killed more than 291,000 people and infected over 4.2 million people.
About Akita Michinoku Capital
Established in 2009, Akita Michinoku Capital is a respected wealth management company with a global network reaching over 40+ countries. By uniting financial markets from East to West, we can support our clients through all facets of wealth management and provide our clients with the best possible investment performance through a broad range of investment products.