FAST NEWS: Gogox Reduces IPO Fundraising Amount in Face of Huge Losses
The latest: Online logistics platform Gogox Holdings Ltd (2246.HK) announced details of its IPO, which began on Tuesday and closes at noon on Friday, with an admission fee of HK$4,343.35 ($556) per lot of 200 shares, and is expected to be listed on 24 June.
Looking up: The IPO was supported by two cornerstone investors, Chery Commercial Vehicle (Anhui) and GF Global Capital, which together subscribed for 23.17 million shares, representing approximately 3.8% of the total issued share capital of the company.
Take Note: The company plans to issue 31.2 million shares at HK$21.5 per share, raising up to HK$670 million, much lower than the previous market rumor of HK$3.9 billion, and it is unknown if this is related to the weak market conditions.
Digging Deeper: Founded in 2013, the predecessor of Gogox, GoGoVan expanded its business from Hong Kong to Mainland China, Taiwan, India, Singapore and Korea in mid-2016, and became one of the first unicorn startups in Hong Kong when GoGoVan merged with 58 Freight in August 2017 at a valuation of $1 billion. The following year, the company changed its name to Gogox, covering more than 340 cities with a network of more than 5.2 million drivers. However, the company has lost 2.8 billion yuan ($420 million) over the past four years and is not expected to make a profit for at least the next two years, which may discourage investors from continuing losses.
Translation by Jony Ho
To subscribe to Bamboo Works free weekly newsletter, click here
