Date
23 July 2017
Uber China is seeking US$1 billion in a new round of funding and planning an initial public offering in the mainland. Picture: Internet
Uber China is seeking US$1 billion in a new round of funding and planning an initial public offering in the mainland. Picture: Internet

Uber China plans IPO, seeks new round of funding

Uber China has confirmed it will list in China’s A-share market.

Head of strategy Liu Zhen made the revelation which was carried by Beijing News on Tuesday.

Earlier reports said the car-hailing company plans a 2016 listing in Hong Kong or mainland China.

Meanwhile, it has been trying to tap Chinese investors for US$1 billion in a new round of financing.

Also, Uber China shareholder Baidu Inc. is reportedly raising its stake in the company. 

Beijing News quoted Liu as saying Uber China operates independently from its US parent in accounting and operations.

“Uber global will be more like an incubator and strategic investor… besides giving technical support,” Liu said.

The company said it gets nearly one million rides a day in China, equivalent to half its global business six months ago.

However, some sources are disputing the claim and accusing Uber China of conspiring with drivers and passengers to fake ride and revenue numbers.

Regulatory uncertainty and legal risks cloud its IPO plans, according to reports.

In July, qq.com reported that China will regulate internet car-calling services anytime soon.

The measures may include tighter restrictions on foreign-owned players, the report said.

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EJ Insight reporter

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