Chinese delivery firm Dada Nexus to kick off $500m US IPO this week

Dada Nexus Limited, a local on-demand retail and delivery platform backed by Chinese e-commerce giant JD Group

Chinese delivery firm Dada Nexus Ltd will launch the investor roadshow for its U.S. initial public offering as early as Wednesday, according to people familiar with the matter, braving U.S.-China tensions over Chinese companies pursuing their stock market debut in New York.

The U.S. Senate passed legislation last week that could prevent some Chinese companies from listing on U.S. exchanges unless they follow standards for U.S. audits and regulations. Nasdaq Inc also tightened listing restrictions for companies from China and other countries.

Shanghai-based Dada is backed by Chinese e-commerce firm JD.com and Walmart Inc, the world’s largest retailer.

Dada aims to sell around $500 million in stock, with JD.com and Bentonville, Arkansas-based Walmart expected to be cornerstone investors, the sources said.

Dada and Walmart declined to comment. JD.com did not immediately respond to a request for comment.

Investor scrutiny of Chinese IPOs in the United States has increased in the wake of the Chinese coffee chain Luckin Coffee’s announcement in April that some employees had fabricated sales accounts. Chinese firms may also be left with fewer listing options after China said it would seek to tighten its grip on Hong Kong, a popular IPO venue for Chinese companies.

In Dada‘s favor is an uptick in demand for delivery services during the lockdowns enforced in many cities to curb the COVID-19 outbreak. Dada operates local on-demand delivery platforms JD-Daojia and Dada Now.

Shares of Chinese cloud computing company Kingsoft Cloud Holdings Ltd, expected to benefit from current economic conditions, have risen above their IPO price since going public in New York last month.

Dada‘s net loss last year widened to 2.46 billion yuan ($344.97 million) from 2.39 billion yuan in 2018. Net revenue in the first quarter rose to 1.1 billion yuan from 526.5 million yuan a year earlier.

Reuters

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.