Uxin, a China-based automotive e-commerce platform backed by corporates Baidu, Legend Holdings and Tencent, yesterday set its pricing range at $10.50 to $12.50.
The company will issue 38 million American Depositary Shares (ADSs), representing 114 million ordinary shares. It could raise up to approximately $547m if it floats at the top of its range and underwriters take up their overallotment option of 5.7 million ADSs in full.
Founded in 2011, Uxin runs an online marketplace for used vehicles that includes tailored recommendations and related services such as insurance, financing, warranty and delivery. It also operates an auction-based service for businesses wanting to acquire multiple vehicles.
Uxin will list on the Nasdaq Global Select Market. It will use the proceeds to improve its transaction service capabilities and invest in research and development, as well as fund general corporate purposes including acquisitions, though it has not lined up any such deals yet.
The company has obtained approximately $1.38bn in funding to date.
Bertelsmann Asia Investments (BAI), a regional investment arm of media conglomerate Bertelsmann, Legend Capital, a venture capital firm formed by conglomerate Legend Holdings, and internet group Tencent participated in a reported $30m round in 2013 alongside DCM.
Private equity firm Warburg Pincus invested $260m in 2014, before internet company Baidu, investment firm KKR and investment manager Coatue Management added $170m the following year.
Uxin received $500m in a January 2017 round co-led by TPG, Jeneration Capital and China Vision Capital that included KKR, Warburg Pincus, Hillhouse Capital, Tiger Global Management and Huasheng Capital.
Investment vehicles Pine Castle Holdings, ClearVue UXin Holdings, Ningbo Meishan Bonded Port Area Jiugen Brothers Equity Investment Center and Ningbo Meishan Bonded Port Area Jiuze Investment Management took part in a $72.5m series G round in July 2017.
Kingkey New Era Auto Industry, a representative of property developer Kingkey, invested $50m in October 2017, and Bank of Communications subsidiary Bocom International put in $44m in November.
Uxin subsequently raised $250m from Kingkey New Era, Apex Ease and Huangpu Investment Holding in January 2018.
Kun Dai, Uxin’s founder, chairman and CEO, is its largest shareholder, with 21.5%, having bought shares from investors including BAI in September 2017. Baidu owns a 10% share of the company and Legend Capital holds a 7.4% stake.
Other notable shareholders include Jeneration Capital (22.3%), Kingkey (14.8%), a Warburg Pincus vehicle called Redrock Holding Investments (14.1%), Tiger Global (9%), Hillhouse (8.4%) and a Kun Dai-controlled vehicle called Xin Gao Group (6%).
Morgan Stanley International, Goldman Sachs (Asia), JP Morgan Securities, China International Capital Corporation Hong Kong Securities and China Renaissance Securities are acting as underwriters for the proposed offering.