Chinese communications cloud service provider Beijing Ronglian Yitong Information Technology Co. is mulling an IPO that could raise as much as $500 million.
The company, also known as Yuntongxun has been engaging with investment banks including Citigroup Inc. and Goldman Sachs Group Inc. on the potential deal that could happen as early as the first half this year, said people familiar with the situation, as reported by Bloomberg. The news outlet added that the U.S. and Hong Kong are both under consideration for possible IPO destinations for the Beijing-based firm.
The consideration for a U.S. IPO comes despite trade tensions between Washington and Beijing continue to simmer. Last month, President Donald Trump signed legislation into law that could boot Chinese U.S-listed firms off American bourses if they don’t abide by auditing standards.
While that could scare away some Chinese firms from seeking share sales in the U.S., that did not stop the nation’s biggest provider of classical music licensing services Kuke Music (NYSE: KUKE) from completing its $50 million IPO on Tuesday. In early trading Wednesday, Kuke’s stock surged 10% from Tuesday’s close to $11.08 per American depositary share. The company priced its IPO at $10 per share.
As for Yuntongxun, it fetched $125 million in a Series F funding round that was headed by China’s state-owned Capital Venture Investment Fund along with others including Mirae Asset, Parantoux Capital, CloudAlpha, and New Oriental Industrial Fund, according to the company.
Backed by Sequoia Capital China, Yuntongxun counts China Merchants Securities Co., Bank of China Ltd., and Ping An Insurance Group Co. (HKEX: 02318; OTC: PNGAY) as its clients, according to the company. Across China and Tokyo, Yuntongxun has more than 1,000 employees.