Chinese online used car marketplace Cango eyes $300m US IPO

Motorists drive through a heavy traffic flow near a passing metro train along the main highway EDSA in Makati, Metro Manila, Philippines June 21, 2016. Photo: REUTERS/ERIK DE CASTRO

Cango, an online used car platform based in Shanghai, is looking to raise up to $300 million in an initial public offering (IPO) in the US, joining a list of Chinese firms seeking to tap America’s public markets for fundraising.

In its US SEC filing, the company said it plans to use the proceeds of the offering to invest in R&D capabilities, expand its sales and marketing efforts, inject capital into Shanghai Autohome to increase financing leases, and expand its automotive transaction facilitation services.

Founded in 2010, 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 the Oliver Wyman Report, we cover the largest number of new car dealers in China, and the outstanding balance of financing transactions we facilitated was the largest among automotive transaction service platforms in China as of December 31, 2017,” the company said.

The company, which plans to list on the New York Stock Exchange under the symbol CANG, booked $194 million in sales for the 12 months ended March 31, 2018. It filed confidentially on March 23, 2018, with Morgan Stanley, BofA Merrill Lynch, Goldman Sachs (Asia) as joint bookrunners.

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.

Last month, Uxin Limited, 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.

Also Read:

China Digest: Used car platform Cheduoduo, co-work space startup Distrii raise funds

Tencent-backed used car auction platform Tiantian Paiche secures $100m

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.