Linklogis Plans IPO, Aims At $1.1 Billion For SCF Tech

Linklogis, a Chinese FinTech with backing from Tencent, is looking to raise 8.3 billion Hong Kong dollars ($1.1 billion) from an initial public offering (IPO) in Hong Kong, Bloomberg reported. Linklogis provides tech solutions for supply chain finance in China.

The company, based in Shenzhen, is selling 452.9 million shares at 16.28 Hong Kong dollars to 18.28 Hong Kong dollars ($2.10 to $2.35) apiece, according to Bloomberg. The share sale attracts six cornerstone investors agreeing to subscribe a total of $365 million in stock. Among those are BlackRock and Fidelity, which will each buy $100 million in shares. Janus Henderson Funds, the Ontario Teachers’ Pension Plan Board and Sequoia China will each buy $50 million, while Singapore-based EDB Investments will buy $15 million.

The IPO will be a test for how the first-time share sale market will go in the wake of Hong Kong’s benchmark stock gauge slumping into what amounts to a correction on Wednesday (March 24), when shares of internet giant Baidu ended flat on Tuesday and fell every day thereafter, Bloomberg reported.

The prospectus for Linklogis shows that the company hasn’t made money in three years, but Bloomberg reported that the company said sales for its supply chain finance solutions boosted 47 percent last year, following an 83 percent surge from the previous year.

According to Bloomberg, the company plans to price the offering March 31, and then list on the exchange April 9.

The aforementioned Baidu, which specializes in artificial intelligence (AI), was reported on March 17 to have raised $3.1 billion from a secondary Hong Kong listing.

Baidu’s 95 million shares account for 3.4 percent of its share capital. The listing represents the second time this year a U.S.-listed tech company from China sought the secondary listing in Hong Kong, with the first being digital car sales platform Autohome, which raised $688 million.

So far in 2021, there have been 26 IPOs completed, which have raised a total $10.8 billion. That’s five times the amount from a year ago.