Chinese ride-hailing firm revs up for HK sale

Cao Cao Mobility, a Chinese ride-hailing firm backed by Zhejiang Geely Holding Group, has picked banks for its planned Hong Kong initial public offering, which could raise a few hundred million US dollars, according to people familiar with the matter.

The company is working with ABC International, Bank of America Corp, and Huatai International on the first-time share sale, the people said.

Cao Cao is looking to file its preliminary prospectus as soon as April next year once it has the full-year financial results for 2022, according to one of the people.

A smaller competitor against Didi Global in the ride-hailing arena, Cao Cao offers service via its own fleet of vehicles and taxis, as well as services including concierge and car rental, according to Geely's website. It's available in 62 cities in China, including Hangzhou, Beijing, Shanghai, Guangzhou and Shenzhen. The company launched its chauffeur service platform in Paris in 2020.

The firm was established in 2015 and raised 1 billion yuan (HK$1.11 billion) three years later in a series A funding round that valued it at more than 10 billion yuan, its website shows. It raised another 3.8 billion yuan last year in a series B round from investors including Suzhou Xiangcheng Financial Holding Group.

Meanwhile, China's Sunshine Insurance plans to price its shares at HK$5.83 each in its Hong Kong IPO to raise HK$6.7 billion, according to people familiar with the matter.

The insurer had marketed shares at HK$5.83 to HK$6.45 apiece. Deliberations are ongoing, the price could still change and no final decisions have been made, the people said.

Even priced at the bottom, Sunshine's listing would be the biggest in the Asian financial hub since battery maker CALB (3931) raised HK$10.1 billion in an October IPO.

It is expected to debut this Friday.

Founded in 2004, Sunshine Insurance operates businesses including life and health insurance, property and casualty insurance, and asset management.

In other IPO news, internet media company Huafang Group, which owns the live-streaming platform Huajiao, is reportedly looking to price its Hong Kong IPO at HK$2.8, the bottom end of its marketed range, to raise HK$129 million.