International Finance

Chinese delivery platform Dada Nexus plans to raise $500 mn in US IPO

Dada Nexus IPO

China-based delivery platform Dada Nexus is planning to raise around $500 million by listing for an initial public offering (IPO) in the US, the media reported.

Dada Nexus listed the size of the offering at $100 million for its IPO, a placeholder amount that is likely to change. However, the listing could raise more than $500 million making it the biggest IPO by a Chinese company this year.

According to media reports, Goldman Sachs, BofA Securities, and New York-based Jefferies are joint underwriters of the deal.

Dada Nexus reportedly filed for its IPO with the SEC on Tuesday. The Shanghai-based company plans to list on Nasdaq.

Dada Nexus operates JD-Daojia, one of China’s largest local on-demand retail platforms by gross merchandise value in 2019, and Dada Now, a leading local on-demand delivery platform in China.

Established in 2014, Dada Nexus has recorded over 634,000 active riders and 822 million delivered orders as of March 31, 2020. Its intra-city delivery service covers more than 700 cities and counties in China.

Last week, China-based Kingsoft Cloud, the cloud-storage subsidiary of one of China’s biggest computer software developers, debuted on Nasdaq following its $510 million IPO.

Chinese search engine Baidu, online gaming and entertainment company NetEase, and online travel company Group are also reportedly are planning to sell their shares on the Hong Kong Stock Exchange.

Beijing-based ecommerce giant is also planning to raise as much as $3.4 billion by listing its shares on the Hong Kong Exchange, local media reports said.

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