China’s used-car trade platform Youxin files for NASDAQ IPO, joining the heated 2018 IPO wave

China’s second-hand car platform, Youxin files for NASDAQ IPO.

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China’s used-car trade platform Youxin files for NASDAQ IPO, joining the heated 2018 IPO wave

Chinese used car trading platform, Youxin has reportedly filed for an IPO listing with the U.S. Securities Exchange Commissioner yesterday, according to a PingWest, a Chinese tech media company.

Youxin is planning to be listed on America’s Nasdaq Stock Market under the ticker “UXIN” and raise up to USD 500 million.

Founded in 2011, Youxin today is a leader in China’s second-hand trading market, offering both B2B second-hand car auction service platform and B2C used-car trading platform. Its platform can also be termed as a one-stop shop, offering services ranging from vehicle detection, secure payment, logistics to car financing services.

According to Youxin’s prospectus, the company’s revenue experienced a 93.2% growth in revenue year-on-year for the first quarter ended March 31 2018. Its total revenue grew by 136.7% last year, hitting a new high of to RMB1,951 million.

Its net loss has ballooned close to RMB2,748 million in 2017 along with spectacular revenue increase.

The company’s net loss in the first quarter of 2018, increased by approximately 64.33%  from the same period in 2017.

The financials are largely in line with its significant sales growth through the past 7 years – with total used cars sales increasing by 67.9% from 2016 to 2017, and a 61.6% year-on-year jump in sales for Q1 2018.

Like all other e-commerce giants in China, its gross merchandise volume (GMV), continues to grow strongly by 47.8% from Q1 2017 to the first quarter of 2018.

The filing also reveals some of the well known underwriters such as Morgan Stanley International, Goldman Sachs (Asia) and JP Morgan Securities for the upcoming IPO trading.

Currently, ownership is mainly by the board of directors and trustees and its CEO collectively and the senior management team, specifically at 24.9% and 28.9% respectively.

The company has also raised up to $960 million to date and is looking to public funds to expand further, cementing its dominance against other notable competitors such as Renrenche and Guazi.com in the nationwide second-hand car market.

Interestingly, despite the overwhelming great performance, the new targeted amount to be raised is lower than its previously rumored plans for an $800 million IPO, according to people familiar with the matter, end of 2017.

Editor: Ben Jiang