Even though tensions between the United States and China remain high and regulatory scrutiny is intense, the United States is likely to see its first initial public offering (IPO) from a Chinese firm in months.
In New York, Meihua International Medical Technologies, a company that distributes medical supplies all over the globe, is slated to make its public debut on the Nasdaq.
Data obtained by the New York Stock Exchange indicates that the healthcare company seeks to raise $57.5 million.
Despite the tiny sum, it would be the first time a Chinese business has been listed on a major stock market since October when biotech startup LianBio raised $334 million on the same platform; according to Dealogic, an information technology company.
With offices in both the United States and China, Lian has a global presence. Sentage Holdings, a Shanghai-based financial services provider, went public on the Nasdaq in August, marking the first time since July that an IPO from a firm predominantly located in China has been offered to American investors.
According to Dealogic, there was just one initial public offering (IPO) by a Chinese firm in the United States from August through January, compared to 20 times the previous year.
Following the disastrous initial public offering (IPO) of the country’s main ride-hailing operator, Didi, last summer, China has tightened its regulations on companies wishing to list on foreign exchanges.
In June, the business went public in the United States, generating around $4.4 billion in the largest initial public offering by a Chinese company in the United States since Alibaba’s debut in 2014.
However, just two days later, China started an investigation into Didi and halted the registration of new users on its app, drawing the company into a broader crackdown on the country’s tech industry as a result of the investigation.
Beijing’s move to target Didi was largely seen as retaliation for her choice to go public in a foreign country. The business sprang to prominence as a symbol of the Chinese government’s attempts to reign in what it perceives to be rebellious Big Tech corporations.
Since then, China’s securities and data authorities have released new proposed guidelines for companies seeking to go public in other parts of the globe.
Chinese authorities, for example, have urged that firms possessing data on more than 1 million users get authorization before going public on the international market.
Didi has announced that it will delist from the New York Stock Exchange in December and conduct its first public equities offering in Hong Kong.
The imminent listing of Meihua in the United States, on the other hand, may herald the beginning of a new wave of activity.
According to documents with the United States Securities and Exchange Commission, a small number of companies with mostly Chinese operations have registered for initial public offerings on Wall Street in recent weeks.