Bloomberg News

July 8, 2021

  •  Beijing-based firm was looking to raise up to $211 million
  •  Postponement comes amid Beijing crackdown on overseas listings

LinkDoc Technology Ltd. has halted plans for a U.S. initial public offering, people familiar with the matter said, the first known company to pull out of a debut after China’s government cracked down on overseas listings.

Market volatility has played a part in the postponement and the Beijing-based medical data company could revisit its listing plans when conditions improve, said one of the people, who asked not to be identified as the information is private.

LinkDoc was slated to price the offering on Thursday, which could have raised as much as $211 million. Morgan Stanley, Bank of America Corp. and China International Capital Corp. were arranging the deal.

Chinese technology stocks suffered a rout after China signaled a new era of tighter oversight over cybersecurity. Shares in Didi Global Inc. plunged after the government ordered the removal of the ride-hailing giant’s app from local app stores within days of its $4.4 billion U.S. IPO.

LinkDoc’s IPO delay also comes as regulators in Beijing are planning rule changes that would allow them to block a Chinese company from listing overseas even if the unit selling shares is incorporated outside China, closing a loophole long-used by the country’s technology giants, Bloomberg News reported this week.

Reuters reported LinkDoc’s IPO halt earlier Thursday. A representative for LinkDoc declined to comment.

LinkDoc, founded in 2014, provides cancer focused health-care services built on big data and artificial intelligence, its website shows. Its investors include Alibaba Health Information Technology Ltd., MBK Partners, New Enterprise Associates and Temasek Holdings Pte according to a preliminary filing.

Chinese companies have raised about $13 billion through first-time share sales in the U.S. this year, according to data compiled by Bloomberg. Didi’s IPO was the second largest U.S. listing by a Chinese firm on record, after Alibaba Group Holding Ltd.’s $25 billion blockbuster debut in 2014.

— With assistance by John Cheng, Dong Cao, Vinicy Chan, and Edwin Chan