Chinese Car Financer Cango Halves Value of Upcoming New York IPO
Liao Shumin
DATE:  Jul 18 2018
/ SOURCE:  Yicai
Chinese Car Financer Cango Halves Value of Upcoming New York IPO Chinese Car Financer Cango Halves Value of Upcoming New York IPO

(Yicai Global) July 18 -- Cango, a Chinese fintech platform for auto financing, plans to raise USD138 million through its initial public offering in New York this month, less than half as much as it had originally planned to obtain.

The Shanghai-based firm plans to issue 12.5 million American Depositary Shares priced between USD10 and USD12 apiece on July 26, American initial public offering researcher IPOBoutique reported, citing an amended registration statement. The firm's June 22 application said it would look to raise USD300 million.

The company more than doubled revenue to over CNY1 billion (USD150 million) last year, with profit rising even faster to CNY349 million, according to its prospectus. It is backed by some of China's biggest technology firms, ride sharer Didi Chuxing (owns 14.8 percent) and general tech behemoth Tencent (owns 10.7 percent), whose equity will dilute slightly after the IPO.

Cango connects dealers, financial institutions and car buyers and had nearly 38,000 registered merchants as of the end the first quarter. It also had 11 third-party lenders and 29 other partners, including online advertisers and insurers, along with more than 730,000 car buyers.

The firm plans to invest about USD40 million of the funds raised in research and development, USD30 million in sales and marketing and another USD20 million in its subsidiary Shanghai Autohome. The remainder will go toward operating capital and potential acquisitions.

Editor: James Boynton

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Keywords:   Cango Inc.,Shanghai Autohome,IPO,Didi Chuxing,TENCENT