Reuters on March 24, citing multiple sources disclosed that China’s “Drip” preferred to conduct an initial public offering in the United States in New York, the reason is that the Hong Kong listing application may be subject to tighter regulation and scrutiny concerns.
Drip, which is backed by technology investment giants such as SoftBank, Alibaba and Tencent, is said to be considering a valuation of at least $100 billion. The company believes that the advantage of listing in New York is that the progress is more predictable and it will have more capital energy as early as the second quarter.
Since 2019, DDT has been repeatedly punished by Shanghai authorities for using unlicensed vehicles, the report said. At the Time, Drip promised to launch an initiative to improve passenger safety. The sources said part of the company’s preference for a New York listing reflected concerns that the Hong Kong listing application could subject its business to closer regulatory scrutiny, including the use of unlicensed vehicles and part-time drivers.
So far, DDT has not confirmed its exact plans for the location or timeline of its stock listing, while the Hong Kong Stock Exchange has declined to comment on individual companies’ listings.
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