Chinese companies have learnt the art of launching IPOs in the US. While India boasts of only one MakeMyTrip (which debuted in Nasdaq three months ago) this year, China has several companies who successfully listed in the US markets. In the third quarter alone, 16 Chinese companies have filed in the US, which is compared with eight in the second quarter and 14 in the first three quarters of last year, according to a report here.
Some of these companies who have gone for listing in the US are backed by venture capital funds. There were four VC backed companies in the third quarter while two of the eight that filed in the second quarter had backing from VC firms.
Le Gaga Holdings Ltd, a Hong Kong-based greenhouse vegetable producer, raised $103 million in October. Le Gaga, which operates 16 farms in the Chinese provinces of Fujian, Guangdong and Hebei, had a good run in stock prices after listing. Apparently ChinaCache International Holdings Ltd, a Beijing-based provider of Internet content, had the biggest first-day rally for a New York listing in three years, according to a report.
The other Chinese companies that raised money from the US market include JinkoSolar Holding Co, a maker of silicon wafers in China’s Jiangxi province, and HiSoft Technology International Ltd, a software development firm based out of Dalian.
Chinese education companies are also hot in the US in October. Beijing-based TAL Education Group raised money in October, while Xueda Education Group has filed for IPO last week,w which will seek to raise $124 million. The company provides tutoring services for primary and secondary school students in China. The other Chinese company seeking to list in the US are SinoTech Energy, which provides enhanced oil recovery services in China. It plans to raise $188 million.