LinkDoc Technology Ltd is a China-based data-driven and AI (Artificial Intelligence)-enabled healthcare technology company.
LinkDoc's decision to suspend its $211 million IPO, first reported by Reuters, is likely to be followed by others, analysts said, although they noted that U.S.
listing, they may have to wait for further clarification, stricter scrutiny and pre-approval from different regulators and authorities," said Bruce Pang, macro & strategy research head at China Renaissance Securities. "The new rules may impose long waiting periods on any companies hoping to list abroad which will hit investor sentiment, depress valuations for IPOs in the U.S. and make it more difficult to raise funds overseas," he said.īacked by Alibaba Health Information Technology Ltd, LinkDoc filed for its IPO last month and was due to price its shares after the U.S. It had planned to sell 10.8 million shares between $17.50 and $19.50 each. The book closed one day earlier than planned on Wednesday, one of the three sources and a separate person said. LinkDoc Technology Limited is a leading oncology big data company, based in Beijing, China. The sources declined to be identified as the information has not yet been made public. LinkDoc did not immediately respond to a request for comment. Morgan Stanley, Bank of America, and China International Capital Corp Ltd (CICC) were the investment banks on the deal and all declined to comment to Reuters. capital markets have been a lucrative source of funding for Chinese firms in the past decade, especially for technology companies looking to benchmark their valuations against listed peers there and tap an abundant liquidity pool. Intel and Alibaba Cloud launch competition to develop AI algorithm for detecting early signs.
So far this year, a record $12.5 billion by Chinese firms has been raised from 34 U.S. listings, Refinitiv data shows, well up from the $1.9 billion from 14 deals in the same period a year ago.Įight Chinese companies including home service platform Daojia Ltd and Atour Lifestyle Holdings have made public filings with the Securities and Exchange Commission (SEC) to list in the U.S. later this year, a review of the filings showed. The tougher stance by the Cybersecurity Administration of China has been driven in part by concerns that the United States could gain greater access to data owned by Chinese firms - similar to concerns that the previous Trump administration had voiced about Chinese firms operating in the United States. In May, Reuters reported that Beijing was pressing audio platform Ximalaya to drop U.S. listing plans and opt for Hong Kong instead, with one source at the time citing Beijing's concerns that U.S. regulators will potentially gain more access to audit documents of New York-listed Chinese companies.Īnalysts also note the tougher stance coincides with new U.S. regulations being rolled out that could see Chinese companies delisted if they do not comply with U.S.
auditing rules.The move announced on Saturday, which confirms a previous report by Bloomberg, is one of the most concrete steps taken yet to restrain the ability of technology firms to raise capital in the U.S. through a so-called Variable Interest Entity model that the likes of Alibaba Group Holding Ltd. Regulators are also considering requiring VIEs like Alibaba that have already gone public to seek approval for additional share offerings in the offshore market, people with knowledge of the matter have said. initial public offering, people familiar with the matter said, the first known company to pull out of a debut after China’s government cracked. The regulator is seeking feedback on the proposed rules, which apply to listings in foreign countries specifically, before implementation. So far this year, 37 Chinese companies have listed in the U.S., surpassing last year’s count, and raised a combined $12.9 billion, according to data compiled by Bloomberg. “These rules will push more Chinese internet firms to list in Hong Kong instead of in another country, to bypass such a review,” said Feng Chucheng, a partner at research firm Plenum in Beijing. View advanced insights on the income statement, including growth rates and metrics that provide an in-depth view of the company's historical and forecasted financial performance. “The one million-user threshold is very low and would basically apply to every internet company aspiring for an IPO.
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