Ant Group-Backed DSC Plans US IPO at Up to $901 Million Valuation

Key Highlights

• In its US IPO, DSC is aiming for a valuation of as much as $901 million.
• The company expects to raise as much as $54 million.
• It is selling 3 million American depositary shares for $16 to $18 each.
• Up to $30 million in shares will be purchased by API (Hong Kong) Investment, a company backed by Ant Group.
• DSC intends to list on Nasdaq under the ticker symbol "DSC".

China's Dasouche, officially known as DSC Holdings, aims for a valuation of up to $901 million for its proposed US IPO. The company hopes to raise as much as $54 million by selling 3 million American depositary shares, which it has priced at between $16 and $18 each.

China Regulator Approved IPO Plan

Chinese IPOs are not frequent in New York, due to the tensions that have increased for the past year or so. In addition, China increased its scrutiny over companies planning overseas listings.

In April, DSC said that regulatory green light was needed from China's securities regulator before the planned New York IPO could happen. The approval represents the first time in four months that a US listing application has been approved.

Company Offers Services to Pre-Owned Car Dealerships

Launched in 2012, DSC is a digital platform that offers used car dealers across China various tools and transaction services. The firm claims that its OS for used car dealers in China boasts a 90% or higher market share. Its tool, Da Feng Che, encompasses inventory sourcing and management, marketing, sales & business analysis with no charge for used car dealers.

Ant Group Plans Share Purchase

Investors in DSC include 5Y Capital, Primavera Capital and Ant Group. API wholly-owned Ant Group to buy as much as $30 million of shares from the offering.

Deutsche Bank, CICC, CR Global Markets and ICBC International are underwriting the IPO. The company intends to list on Nasdaq under the ticker "DSC".

Source: Reuters

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