(Reuters) -Chinese insurance broker Yuanbao said on Thursday that it was targeting a valuation of up to $676.3 million in its U.S. initial public offering, amid economic uncertainty and a slowdown in IPO listings following the announcement of new U.S. tariffs.
WHY IT’S IMPORTANT
Market volatility driven by uncertainty regarding U.S. trade policy has slowed IPO activity, with many companies choosing to wait before moving forward.
This IPO is also taking place amid an intensifying trade war between the world’s two largest economies, further extending uncertainty.
However, the Yuanbao listing comes after the stellar Nasdaq debut of Chinese tea chain Chagee earlier this month.
CONTEXT
Yuanbao is an online insurance distributor in China that analyzes data to provide customizable insurance plans to its customers.
Some of its existing principal shareholders have shown interest in buying up to $17 million worth of American depositary shares (ADSs) being offered in the IPO.
Elsewhere, China-based venture capital firm Qiming Venture Partners has agreed to purchase $1 million worth of Yuanbao shares in a concurrent private placement.
Yuanbao will list on the Nasdaq under the symbol “YB”.
Goldman Sachs, Citigroup and CICC are the lead underwriters for the offering.
BY THE NUMBERS
Yuanbao is seeking up to $30 million by offering nearly 2 million ADSs priced between $13 and $15 each.
The company said its full-year revenue rose to 3.28 billion Chinese yuan ($450 million) in 2024, up from 2.05 billion Chinese yuan a year earlier.
($1 = 7.2888 Chinese yuan renminbi)
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Mohammed Safi Shamsi)
