(Bloomberg) – LinkDoc Technology Ltd. has halted its plans for an IPO in the United States, said people familiar with the matter, the first known company to pull out of its early stages after the Chinese government cracked down on overseas listings.
Market volatility played a role in the postponement and the Beijing-based medical data company may revisit its listing plans when conditions improve, said one of the people, who asked not to be identified. because the information is private.
LinkDoc was due to price the offer on Thursday, which could have raised up to $ 211 million. Morgan Stanley, Bank of America Corp. and China International Capital Corp. organized the operation.
Chinese tech stocks suffered a rout after China announced a new era of tighter cybersecurity oversight. Shares of Didi Global Inc. plunged after the government ordered the rideshare giant’s app to be removed from local app stores within days of its $ 4.4 billion state IPO. -United.
Read more: Didi sued against US shareholders after China crackdown
The delay in LinkDoc’s IPO also comes as regulators in Beijing plan rule changes that would allow them to prevent a Chinese company from listing overseas even though the unit sells shares. is incorporated outside of China, closing a loophole long used by the country’s tech giants, Bloomberg News reported this week.
Reuters announced the end of LinkDoc’s IPO earlier Thursday. A representative for LinkDoc declined to comment.
LinkDoc, founded in 2014, provides cancer-focused healthcare services based on big data and artificial intelligence, its website says. Its investors include Alibaba Health Information Technology Ltd., MBK Partners, New Enterprise Associates and Temasek Holdings Pte, according to a preliminary filing.
Chinese companies have raised about $ 13 billion from the first sale of shares in the United States this year, according to data compiled by Bloomberg. Didi’s IPO was the second-largest U.S. listing of a Chinese company, following the start of Alibaba Group Holding Ltd. to $ 25 billion in 2014.
(Add more detail from fourth paragraph.)
More stories like this are available at bloomberg.com
Subscribe now to stay ahead of the curve with the most trusted source of business information.
© 2021 Bloomberg LP