Business & Finance

Alibaba-Backed Delivery Startup GogoX Navigates a Tough IPO Market

Alibaba-Backed Delivery Startup GogoX Navigates a Tough IPO Market #AlibabaBacked #Delivery #Startup #GogoX #Navigates #Tough #IPO #Market Welcome to JibGlobe, here is the new resources we have for you today:

The go-go days are over for Hong Kong’s IPO market.

GogoX Holdings Ltd. is the kind of startup that might once have received a warm reception from investors in the city as a tech-enabled logistics platform backed by

Alibaba

Group Holding Ltd.

But on Friday, it made a lackluster debut on the city’s stock exchange after raising just $85 million in a scaled-back IPO. And while GogoX had engaged 11 banks for the initial public offering, it relied heavily on one buyer—a subsidiary of Chinese car company Chery Holding Group Co. which bought $50 million of stock.

Investors have eschewed new deals as markets contend with surging inflation, rising interest rates, Russia’s invasion of Ukraine and China’s regulatory crackdown on homegrown technology companies. Companies have raised $2.44 billion so far this year in Hong Kong through new and secondary stock listings, down from $27.76 billion a year ago, according to Dealogic.

Beijing-based GogoX priced its IPO at 21.50 Hong Kong dollars a share, the equivalent of $2.74, giving it a market capitalization of about $1.69 billion. The stock had fallen 9% by late afternoon Friday.

During earlier pre-deal dialogue with investors, GogoX had been looking to raise about $100 million to $200 million, a person familiar with the matter said.

Chery was one of two cornerstone investors that together bought 74% of the whole deal. Cornerstone investors commonly support Hong Kong IPOs, committing to invest a fixed dollar amount wherever a deal prices, and to hold on to their shares post-IPO.

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