<article><a href="https://www.dealstreetasia.com/?s=TuanChe">TuanChe</a>, an omnichannel automotive marketplace in China, is looking to raise $150 million in an initial public offering in the US to further expand its business and fund potential strategic investment and acquisitions, according to an SEC document.</article>

<a href="https://www.dealstreetasia.com/?s=TuanChe">TuanChe</a>, an omnichannel automotive marketplace in China, is looking to raise $150 million in an initial public offering in the US to further expand its business and fund potential strategic investment and acquisitions, according to an SEC document.
The $150-million figure is likely a mere placeholder to calculate the fee for its filing, which is heavily redacted. The Beijing-based company has identified <a href="https://www.dealstreetasia.com/?s=Maxim%20Group LLC">Maxim Group LLC</a> and <a href="https://www.dealstreetasia.com/?s=AMTD%20Asset Management">AMTD Asset Management</a> as the joint bookrunners of the IPO.
The deal is being marketed on a best efforts basis, which means the underwriters do not have an obligation to purchase any securities and, as a result, TuanChe may not be able to sell the minimum number of American Depositary Receipts (ADR) that will be offered.
In its filing, TuanChe, which has applied to list its ADRs on the Nasdaq Global Market under the symbol “TC”, said its existing investors &#8211; <a href="https://www.dealstreetasia.com/?s=Honour%20Depot Limited">Honour Depot Limited</a>, <a href="https://www.dealstreetasia.com/?s=BAI%20GmbH">BAI GmbH</a>, and <a href="https://www.dealstreetasia.com/?s=K2%20Partners II LP">K2 Partners II LP</a> &#8211; have committed to purchase a total of $15 million ADS in the IPO.
Founded in 2010, TuanChe operates online platform tuanche.com that matches prospective car buyers with auto dealers. It also has an online used car auction platform, a WeChat mini-program, and mobile applications.
&#8220;Together, these channels promote our offline events and serve as a consumer acquisition tool for our offline events and for the secondary dealers using our virtual dealership services,&#8221; the company said.
According to an iResearch report, TuanChe ranked third in terms of both volume and gross merchandise value (GMV) of new automobiles sold in China in 2017. The total number of automobiles sold through its marketplace increased 130.9 per cent to 150,751 units in the first six months of this year from the same period last year. For the entire 2017, the company sold 207,506 units
It has also reported revenue of $40.7 million and its net loss narrowed to $3.2 million in the six months through June 2018. In addition, it posted revenue of $42.4 million and a net loss of $13.7 million for the full year of 2017.
TuanChe expressed confidence on the growth of the business given that China is the second largest automobile market in the world with 185 million car parc, or the total number of cars in a region at a specific time, as of December 2017.
“China’s car ownership rate is much lower compared to that of the United States. Therefore, the automobile market in China still presents considerable growth potentials,” the company said.
Based on its filing, the company said it will use the proceeds of its IPO for the development and expansion of its business, strengthening its information technologies and data analytics capabilities, and for general corporate purposes.
Tuanche was founded by Wei Wen, Jianchen Sun, Qiuhua Xu, and Xingyu Du.
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The Chinese firm plans to use the proceeds to further expand its business and fund potential strategic investment and acquisitions.

Chinese auto marketplace TuanChe files for US IPO

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Chinese auto marketplace TuanChe files for US IPO

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