<article><a href="https://www.dealstreetasia.com/?s=Cango">Cango</a>, an online used car platform based in Shanghai, is planning to raise $138 million for its US IPO by offering 12.5 million shares at a price range of $10-12, according to the company&#8217;s filing.</article>

<a href="https://www.dealstreetasia.com/?s=Cango">Cango</a>, an online used car platform based in Shanghai, is planning to raise $138 million for its US IPO by offering 12.5 million shares at a price range of $10-12, according to the company&#8217;s filing.
The target amount is lower than the $300 million that the company initially planned to raise when it filed its US SEC filing in June. At the midpoint of the proposed range, Cango would command a fully diluted market value of $1.8 billion.
Cango was founded in 2010 and booked $188 million in revenue for the 12 months ended March 31, 2018. It plans to list on the NYSE under the symbol CANG. <a href="https://www.dealstreetasia.com/?s=Morgan%20Stanley">Morgan Stanley</a>, <a href="https://www.dealstreetasia.com/?s=BofA%20Merrill Lynch">BofA Merrill Lynch</a>, and <a href="https://www.dealstreetasia.com/?s=Goldman%20Sachs">Goldman Sachs</a> (Asia) are the joint bookrunners on the deal.
The company said it plans to use the proceeds of the offering to invest in R&amp;D capabilities, expand its sales and marketing efforts, inject capital into Shanghai Autohome to increase financing leases, and expand its automotive transaction facilitation services.
The company said its platform has connected 37,600 registered dealers, 11 third-party financial institutions, online advertisers, insurance brokers, and other industry participants as of March 31, 2018. It says it has served 734,336 car buyers cumulatively since inception.
According to global research firm iResearch, China is the world’s second-largest automotive market as measured by registered vehicles and is forecasted to become the largest automotive market by 2023.
As of the end of 2017, there were approximately 185 million registered vehicles in the country, compared with 275 million in the US.
Total used car transaction volume in China reached 12.4 million in 2017, with the ratio of the country’s used car sales to new car sales by volume at 0.5, significantly lower than 2.4 per cent in the United States.
In May, Chinese used car trading platform Uxin Limited filed for an IPO in the US, targeting to raise up to $500 million to boost service capabilities and fund potential investments and acquisitions.
Uxin’s business is composed of Uxin Used Car, which caters to consumer buyers, and Uxin Auction, which caters to business buyers.
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Cango, an online used car platform based in Shanghai, is planning to raise $138 million for its US IPO by offering 12.5 million shares at a price range of $10 to $12, according to the company's filing.

Chinese used car marketplace Cango sets terms for $138m US IPO

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Chinese used car marketplace Cango sets terms for $138m US IPO

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