China's Full Truck Alliance Lands on NYSE

Automotive Author: Qasim Khan Jun 22, 2021 07:23 PM (GMT+8)

The issue price was set at USD 19 per share with plans to sell 82.5 million shares, each of which represents 20 Class A ordinary shares.

High speed truck

China's largest digital freight platform Full Truck Alliance (or Manbang Group) officially landed on the New York Stock Exchange under the "YMM" code on June 22, 2021. Under the greenshoe mechanism, the underwriters have another 12.375 million ADS over-allotment rights. Based on this calculation, the fundraising scale of Manbang Group will exceed USD 1.8 billion and the valuation will exceed a staggering USD 20 billion.

The prospectus shows that China's 'Uber for Trucks' 2019 revenue was CNY 2.47 billion, 2020 revenue was CNY 2.58 billion with a Non-GAAP net profit of CNY 281 million. In the first quarter of this year, Manbang's revenue was CNY 867 million, a year-on-year increase of 97.7% with Non-GAAP net profit increasing by 324.4% to CNY 113 million.

As of the end of 2020, the truck hailing firm's business covers more than 300 cities across the country, with more than 100,000 lines. Softbank and Sequoia are the major shareholders with 22.2% and 7.2% shares respectively.