Beijing-based LinkDoc Technology has suspended its IPO plan in the US after China launched investigations against tech companies that went public abroad.
According to Bloomberg’s report, the volatility in the market was effective in the company’s cancellation decision. The company will reevaluate its IPO plan once conditions improve.
Morgan Stanley, Bank of America, and China International Capital Corp would mediate LinkDoc’s IPO, and the company was scheduled to raise up to $211 million.
Regulators in China were planning a change in regulations to prevent Chinese companies from being listed on Exchanges abroad.
Criminal investigation from China
China’s cyber security regulator launched an investigation into Didi, which was offered to the public in the US for data security risk, national security and protection of public interest, and demanded that the application be removed from virtual shops.
Didi, known as China’s Uber, was recently offered to the public in New York with a valuation of $4.4 billion. Didi’s share price, which was offered to the public at $ 14 per share, fell below the IPO price after the investigation and hovers around $11.91.
The measures taken for now do not cause any problems with the operation of the company, but the uncertainty regarding Chinese internet companies continues.
“Didi has the most detailed travel information”
The details of the investigation are not yet known, but the state-sponsored Global Times newspaper wrote that Didi has the most detailed travel information in the country and is capable of performing big data analysis on users’ behavior.
In addition to Didi, the regulatory body, which started an investigation against the Full Truck Alliance, which provides online freight and logistics solutions, also started an investigation on the recruitment site Zhipin.com.