Tuhu Online Car Services Launching IPO in Hong Kong

Tuhu, a Chinese online car services platform backed by Goldman Sachs Group Inc. and Tencent Holdings Ltd. among other investors, is relocating its initial public offering (IPO) from the U.S. to Hong Kong, according to a Bloomberg report Thursday (Jan. 6) that cited people with knowledge of the matter.

The startup, which is formally known as Shanghai Lantu Information Technology Holding Ltd., is working with China International Capital Corp. on its IPO, which could raise $300 million to $400 million later this year, the sources told Bloomberg. Tuhu representatives said they aren’t aware of any listing plans.

Tuhu is one of many Chinese companies listing in Hong Kong rather than in the U.S. since Beijing started its crackdown on overseas listings over data security concerns and American regulators began their push for better risk disclosures.

Logistics firm Lalamove and Meicai, which connects restaurants with vegetable producers, are among the Chinese companies shifting their IPOs to Hong Kong, according to Bloomberg News.

Tuhu’s online platform offers tire and battery replacement, refurbishment and other automotive services, according to its website. The company raised $450 million in 2018 in a funding round led by Tencent, Carlyle Group Inc. and Sequoia Capital. Baidu Inc. is among its other early investors.

Tuhu was pushing for a $4 billion valuation in an earlier funding round, according to Bloomberg News.

Related: China’s Tencent Takes Stake in UK Challenger Bank Monzo

Tencent recently invested in Monzo, which is now valued at $4.5 billion. Tencent has a global FinTech portfolio and investments in several other companies, including Argentine personal finance app Ualá, Qonto and Lydia, both French startups, and challenger bank Tyme of South Africa.

Tencent’s investment in Monzo is a $100 million top-up to a $500 million round led by the Abu Dhabi growth fund. The company also made a deal last July to buy Sumo Group, a games developer that has worked with Sony, Microsoft and Sega.