Chinese companies have once again joined the IPO kickoff in the United States this year, with three China-based firms leading the pack. There were a total of four companies that launched their IPOs last week at the New York Stock Exchange, three of which were companies from China, while the other one was mortgage lender based in the US.
Over the past decade, more and more Chinese firms have chosen to list in the United States as part of their efforts to expand overseas. The number of Chinese firms listed in the country has resulted in the establishment of the S&P US Listed China 50 Index, which is an index that tracks the performance of the 50 largest Chinese stocks on US exchanges. The ranking is based on the companies' total market cap. The index stood at 3,418.51 on Friday last week, a 7.93 percent increase in year-to-date returns.
One of the largest Chinese firms to list last week was Phoenix Tree Holdings, one of China's largest apartment rental service providers. The company, which operates under the name Danke Apartment, launched its IPO under the ticker symbol "DNK." Danke sold a total of 9.6 million American depository shares (ADS) priced at $13.5 per share. The company managed to raise close to $130 million during its IPO.
Danke Apartment CEO, Gao Jing, stated in an interview that Danke was able to grow at such an exponential rate over the past couple of years thanks to the rapid demand in China's residential market.
The company, which was originally founded in 2015, uses a standardized and centralized online platform that is easy to use and navigate for both renters and homeowners. Danke is currently operating in more than 13 cities across China, with plans to expand its service overseas. Gao stated that its US IPO is a major milestone for the company.
The other companies that listed their shares on the New York Stock Exchange last week were interactive podcast platform operator LIZHI and clinical-stage Biopharma company I-Mab.
LIZHI, which was originally founded in 2010, owns and operates the Lizhi mobile application. The app itself is a social media and streaming platform for podcasts, interviews, and other voice recordings. The platform provides users with various discovery tools and features that effectively help them find their audience online. LIZHI, which traded under the ticker symbol "LIZI," sold a total of 4.1 million ADSs priced at $11 per share.
Meanwhile, I-Mab sold a total of 7.4 million ADSs priced at $14 per share. The company traded under the ticker symbol "IMAB" on the New York Stock Exchange.
