BingEx Raises $66 Million in IPO

(Reuters) – China’s BingEx announced on Friday that it raised $66 million in its U.S. initial public offering (IPO), valuing the courier delivery firm at $1.17 billion. This marks a positive shift in investors’ risk appetite and indicates a reduction in regulatory challenges.

The company, which markets its services under the name FlashEx, sold 4 million American depositary shares (ADS) priced at $16.50 each, aiming for a range of $15 to $17.

The IPO is expected to have positive implications for the broader market, which has struggled for nearly two years due to ongoing high interest rates and stock market volatility.

Analysts note that the recent rally in equities and the beginning of the U.S. Federal Reserve’s monetary policy easing are boosting market sentiment. Expectations suggest that interest in riskier investments may continue to rise in 2025, significantly revitalizing the IPO market.

As of June 30, BingEx was operational in 295 Chinese cities with over 2.7 million registered riders, commanding 33.9% of China’s independent on-demand courier service market, according to their IPO prospectus from iResearch.

The number of Chinese companies seeking stock market listings in the U.S. has decreased recently, following restrictions imposed by Beijing on offshore fundraising initiatives in 2021.

Earlier this year, Zeekr, an electric vehicle manufacturer, marked the first substantial listing by a Chinese firm in the U.S. since Didi Global was delisted in late 2021 due to regulatory pressures.

BingEx’s ADS are poised to commence trading on the Nasdaq under the ticker symbol “FLX” later on Friday. Deutsche Bank Securities, CICC, and CLSA are serving as the lead underwriters for the offering.