Car maintenance service startup Tuhu Car to raise $146m in HK IPO: sources

Car maintenance service startup Tuhu Car to raise $146m in HK IPO: sources

Visuals from the official website of Tuhu Car Inc

Chinese car maintenance service startup Tuhu Car is set to raise HK$1.137 billion ($146 million) in its Hong Kong initial public offering by pricing its shares at HK$28 apiece, according to three sources with direct knowledge of the matter.

The sources could not be named discussing confidential information. Tuhu declined to comment.

The company is selling 40.61 million shares in the IPO in a price range of HK$28 to HK$31 each, according to its regulatory filings.

The firm, backed by Tencent, Carlyle Group and Sequoia China, can also sell a further 6.1 million shares as part of a so-called ‘greenshoe option’.

Tuhu shares are due to start trading on the Hong Kong Stock Exchange on Sept 26.

Five cornerstone shareholders led by Zhejiang Leapmotor Technology and Gotion High-Tech, subscribed for about $100 million worth of stock in the IPO, the filings showed.

Tuhu plans to use about one-third of the cash raised in the IPO to enhance its supply chain capabilities and a further 20% on technology research and development.

Tuhu was founded 12 years ago in Shanghai and provides car repair and maintenance services via an online-to-offline business model.

Its app links customers with more than 4,700 car repair centres and 19,000 partner centres across China, according to its preliminary filings to the Hong Kong Stock Exchange.

Tuhu said it had 17.1 million transacting users in the year ended March 2023, which was up 9.9% on the same time last year, the filings said.


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