China-based trucking services provider Full Truck Alliance filed for a $1.5bn initial public offering yesterday that would enable internet groups Baidu and Tencent, internet technology provider Alphabet and telecommunications and internet conglomerate SoftBank to exit.
Also known as Manbang Group, Full Truck Alliance runs an online platform where businesses can book space for freight delivery in trucks across a network of some 2.8 million drivers.
The company filed confidentially for its IPO in February this year and Reuters had previously reported it was seeking a $20bn valuation for the offering. It made a $532m net loss from approximately $396m in revenue in 2020, according to the IPO filing.
The IPO proceeds have been earmarked for further developing the company’s technology and infrastructure in addition to growing its range of services.
Full Truck Alliance’s most recent funding involved it raising $1.7bn in a November 2020 round co-led by SoftBank’s Vision Fund, investment and financial services group Fidelity, Sequoia Capital China and Permira’s Growth Opportunities Fund at a valuation close to $12bn.
Tencent, Hillhouse Capital, GGV Capital, Lightspeed China Partners and YF Capital filled out the November round, which came after Tencent, SoftBank Vision Fund, Alphabet unit CapitalG, Sequoia China, GSR Ventures, China Reform Fund and Ward Ferry provided $1.9bn in 2018 at a $6.5bn valuation.
The company had been established by the 2017 merger of Huochebang and Yunmanman. They had raised a combined $535m from Tencent, Baidu subsidiary Baidu Capital, Sequoia China, Lightspeed Venture Partners, YF Capital, Tiger Management, All-Stars Investment, Genesis Capital, DCM Ventures, International Finance Corporation and Zhongding Capital.
Vision Fund holds 22.2% of Full Truck Alliance’s shares while founder, chairman and CEO Peter Hui Zhang owns 8.9% through a vehicle called Full Load Logistics. Sequoia China has a 7.2% stake while a Zhang-controlled entity called Master Quality Group has 6.6%.
Morgan Stanley, China International Capital Corporation Hong Kong Securities, Goldman Sachs (Asia), UBS Securities, Huatai Securities (USA), Citigroup Global Markets, Nomura Securities International, China Renaissance Securities (Hong Kong) and CLSA are the underwriters for the IPO, which is set to take place on the New York Stock Exchange.
