China’s Full Truck Alliance plans on targeting around $20 bln valuation in U.S. IPO

China’s Full Truck Alliance Co Ltd (FTA), the world’s largest digital freight platform by gross transaction value according to the CIC Report, said on Tuesday that, it is aiming for a valuation of over $20 billion in its initial public offering in the United States.

Marking the second major U.S. stock market listing for a Chinese company this year, FTA, which styles itself as the “Uber for trucks”, said it is offering 82.5 million American Depositary Shares (ADS) at a ranging between $17 and $19.

Reuters had reported in November, FTA was valued at nearly $12 billion after a $1.7 billion investment, the round being led by Japanese conglomerate SoftBank’s Vision Fund, Sequoia Capital, Permira Capital and Fidelity.

The company could potentially raise as much as $1.57 billion from the IPO.

Morgan Stanley, CICC and Goldman Sachs are among the underwriters, despite the U.S. having introduced certain considerable measures important for non-American companies. These could result in foreign companies being delisted from American stock exchanges within three years if they do not comply with the country’s auditing standards, however,  Chinese firms involved in U.S. listings believe they will be able to comply with the rules. They even went on claiming that they can also complete a secondary listing in Hong Kong or Shanghai within that time frame.