<article>Shanghai-based online used car platform <a href="https://www.dealstreetasia.com/?s=Cango">Cango</a> raised $44 million in its initial public offering (IPO) on the <a href="https://www.dealstreetasia.com/?s=New%20York Stock Exchange">New York Stock Exchange</a> after substantially decreasing the size of its offering.</article>

Shanghai-based online used car platform <a href="https://www.dealstreetasia.com/?s=Cango">Cango</a> raised $44 million in its initial public offering (IPO) on the <a href="https://www.dealstreetasia.com/?s=New%20York Stock Exchange">New York Stock Exchange</a> after substantially decreasing the size of its offering.
After making its trading debut on Thursday, it ended Friday with its ADS trading at $12.08.
DEALSTREETASIA first reported in June that Cango was looking to raise up to $300 million in an IPO, based on its US Securities and Exchange Commission (SEC) filing dated June 22.
In a statement last week, however, the company said it priced its IPO of 4 million American depository shares (ADS) at a price of $11 each.
Cango also granted the underwriters an option, exercisable within 30 days from the date of the final prospectus, to purchase up to an additional 600,000 ADSs to cover over-allotments.
On Friday, Cango ended
Morgan Stanley &amp; Co. International plc, Merrill Lynch, Pierce, Fenner &amp; Smith Incorporated, and Goldman Sachs (Asia) acted as joint bookrunners of the offering and as the representatives of the underwriters.
The company, founded in 2010, had 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.
Cango claims that 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 expected 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.
Last month, <a href="https://www.dealstreetasia.com/?s=Uxin%20Limited">Uxin Limited</a>, another used car trading platform in China, filed for an IPO in the US, targeting to raise up to $500 million to boost service capabilities and fund potential investments and acquisitions.
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Shanghai-based online used car platform Cango substantially decreased the size of its IPO in the US from $300 million to a mere $44 million.

Chinese used car marketplace Cango raises $44m in trimmed US IPO

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Chinese used car marketplace Cango raises $44m in trimmed US IPO

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