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Full Truck Alliance eyes potential IPO: Bloomberg
Posted on Monday, 16 September 2019 10:44
The chief of finance at Full Truck Alliance told Bloomberg TV the Chinese freight truck-hailing app also known as Mabang is ready to hold an initial public offering (IPO) but did not want to commit to a timeframe.
According to Richard Zhang, the Guiyang-headquartered online road logistics platform will want to be admitted to trading “eventually” but is yet to decide whether to hold a pre-listing round first, he added.
Full Truck Alliance has started weighing a potential first-time share sale after breaking even in May in “both in the accounting and cash flow sense”.
This improved financial performance was a factor in the app operator’s decision to ditch plans for a USD 1.00 billion financing round that would have given a post-money valuation of USD 9.00 billion, Zhang told Bloomberg.
He added the Tencent- and SoftBank Vision fund-backed company was worth about USD 6.40 billion when it completed its last fundraiser in April 2018.
Full Truck Alliance was formed by a merger between China’s two largest truck-sharing platforms, Huochebang and Yunmanman, in 2017 and offers comprehensive services like financial products for electronic toll collection payments.
According to a March 2019 article by China Daily, the company has about 5.50 million registered truck drivers, which accounts for some 90.0 per cent of the total number currently on the main highways in China.
It has also expanded into autonomous technology by investing in Plus.AI, a Californian self-driving startup focused on the large-scale commercial trucking sector.
This overseas company has already worked alongside state-backed heavy truck manufacturer FAW Jiefang on semi-autonomous trucks – Bloomberg noted they launched their first commercial product earlier this month.
Plus.AI’s co-founder, David Liu, has told the news provider the startup is currently negotiating funding with new investors.
© Zephus Ltd