Full Truck Raises $1.6 Billion in U.S. IPO

The freight solutions platform priced its IPO at $19 per share--its high-end range.
Jun. 22, 2021 00:19
Full Truck Raises $1.6 Billion in U.S. IPO

Full Truck Alliance Co. Ltd. has raised roughly $1.6 billion after pricing its U.S. IPO at the high end of its range.

The Nanjing-based company has sold 82.5 million American depositary shares at $19 apiece, according to a report from Bloomberg today, citing people familiar with the matter. The $19 per share price tag will value Full Truck at $20.6 billion, according to the news outlet.

Previously, the freight solutions platform said it was looking to sell its shares in the range of $17 and $19.

The IPO could be one of the largest ones this year conducted by a Chinese company on Wall Street. If the underwriters express their over-allotment option to buy up to an additional 12.4 million shares, then Full Truck would raise $1.8 billion. That would beat the $1.6 billion that vaping giant RLX Technology (NYSE: RLX) raised earlier this year in its U.S. IPO.

Morgan Stanley & Co. LLC, China International Capital Corporation Hong Kong Securities Ltd., Goldman Sachs (Asia) LLC, UBS Securities LLC, Huatai Securities (USA) Inc., Citigroup Global Markets Inc., Nomura Securities Int'l Inc., China Renaissance Securities (Hong Kong) Ltd., and CLSA Ltd. are securing the deal for Full Truck.

Backed by SoftBank, Full Truck connects shippers with truckers on its platform. Citing China Insights Consultancy, the company claimed to be the world's largest digital freight platform by gross transaction value in 2020.

In March 2021, Full Truck counted 1.4 million active shippers on its platform. For 2020, it facilitated 71.7 million shipping orders with a GTV of $26.6 billion. According to CIC, the company served 20% of China's heavy-duty and medium-duty truckers last year.

In 2020, Full Truck generated $395.5 million in revenue, a 4% increase from 2019. Meanwhile, losses more than doubled to $531.9 million last year, according to the prospectus. In the first quarter 2021, Full Truck doubled its revenue year-over-year to $132.9 million, on widened losses of $30.2 million.

Full Truck plans on using the funds from the share sale to expand service offerings, and invest in infrastructure development and technology innovation. It will also use some of the proceeds for general corporate purposes.

The company is set to float its shares on the New York Stock Exchange on Tuesday under the ticker "YMM."