- Title: Chinese online grocery firm Dada files for U.S. IPO
- Date: 13th May 2020
- Summary: GREENWICH, CONNECTICUT, UNITED STATES (MAY 13, 2020) (REUTERS VIA ZOOM) (SOUNDBITE) (English) RENAISSANCE CAPITAL, PRINCIPAL, KATHLEEN SMITH, SAYING "Well, as long as U.S. investors are comfortable and enthusiastic about these growth companies, there's no reason for these companies not to tap the U.S. market. But there is tension out there, and, in the long run, I think, a concern when we're putting in reforms that say that certain pension plans may not be able to buy Chinese ADRs. So, those kinds of things are worries, but I think they're worries down the road a little bit, and not as much of an issue here and now that we can see. So, we expect this company to get the attention. And, you know, it has backing of JD.com and Wal-Mart, so, it has some pretty good partners in the business that it's building up and that should help."
- Embargoed: 27th May 2020 19:45
- Keywords: Dada Nexus Dada Now JD-Daojia Kathleen Smith Kingsoft Cloud Nasdaq IPO U.S. listing deliveries initial public offering online grocery shopping
- Location: BEIJING, CHINA / GREENWICH, CONNECTICUT, UNITED STATES / INTERNET
- City: BEIJING, CHINA / GREENWICH, CONNECTICUT, UNITED STATES / INTERNET
- Country: USA
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA007CDRMIX3
- Aspect Ratio: 16:9
- Story Text: Online grocery firm Dada Nexus Ltd. filed for an initial public offering, making it the latest Chinese firm to opt for a U.S. listing after a strong debut by Kingsoft Cloud Holdings.
Dada, which is a joint venture company of Chinese e-commerce firm JD.com, set a place-holder amount of up to $100 million and did not specify the size of its offering.
Last year, media outlets reported that Dada is looking to raise around $500 million in its flotation.
In a regulatory filing on Tuesday, the company said funds associated with venture capital firm Sequoia Capital and JD Sunflower Investment are among its principal shareholders.
Dada operates JD-Daojia, a local on-demand retail platform and Dada Now, a local on-demand delivery platform.
The COVID-19 pandemic has ravaged global capital markets in the past two months and slammed the brakes on IPOs. In January, buyout firm Carlyle Group Inc. CG.O delayed the U.S. IPO of its German specialty chemicals group Atotech.
Companies including Cole Haan Inc. and 58 Home have also put their IPO plans on hold.
However, Kingsoft's shares popped over 25% last week after the company raised $510 million in its IPO.
In 2018, Dada raised $500 million from U.S. retailer Walmart and JD.com.
Dada's net loss available to ordinary shareholders last year widened to 2.46 billion yuan ($347 million at current exchange rates) from 2.39 billion RMB in 2018.
Goldman Sachs, BofA Securities and Jefferies are the lead underwriters to Dada's offering.
(Production: Aleksandra Michalska) - Copyright Holder: REUTERS
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