Despite a string crackdown of Chinese regulators on domestic home grown technology companies, Chinese tech firm and owner of the popular short-video app TikTok - ByteDance, has revived its plans for a public listing and wants to go public in Hong Kong by early next year.
According to a report published by the Financial Times quoting sources with knowledge of the company’s plans, ByteDance plans to list in either the fourth quarter of this year or early 2022 after raising about $5bn in December at a $180bn valuation.
Since postponing its overseas public listing previous this year, the company has been focused in the last few months to adhere to the data security concerns expressed by Chinese regulators which i9ncluyding handing over more detailed information to the Chinese authorities about how the company stores and manages consumer information, said the report quoting one of the sources.
“We are expecting final guidance from ByteDance in September. They are submitting all the filings with Chinese authorities right now and are going through the review process,” the source was quoted in the report as saying.
There was no official comment available from ByteDance on the issue.
Following Chinese authorities widening a months-long crackdown on the country’s largest tech groups for allegedly violating data security and monopoly laws, ByteDance, whose video app TikTok is incredibly popular in the west, pulled out of its plans for an overseas listing which would have most probably been in the United States.
As a part of the Chinese government’s focus on national security, there will be stricter oversight of overseas listings by the regulators of the country.
The decision of ByteDance to postpone its overseas public listing helped it to generate more goodwill among Chinese regulators unlike the Chinese ride hailing company Didi Chuxing which pushed through a planned $4.4bn initial public offering in New York in June even as internet regulatory authorities in China raised concerns of the data security practices of the company, said the report.
Almost immediately after its IPO, an investigation into Didi was announced by the Cybersecurity Administration of China, and authorities ordered the main app of the company to be removed from Chinese app stores.
A new rule was then released by the regulator according to which, a company that has more than one mission users will need to pass a data security review before being allowed to get listed overseas. The aim of this move by China is to ensure foreign regulators not obtaining sensitive user information.
According to the report, sources said that ByteDance was “in similar meetings as Didi and Full Truck Alliance” with cyber security regulators in China. Regulators are also investing a Chinese truck hailing company, Full Truck Alliance, after the company went public in the United States.
One of the sources was quoted in the report as saying that ByteDance “decided not to continue with a New York listing” after the meetings.
(Source:www.ft.com)
According to a report published by the Financial Times quoting sources with knowledge of the company’s plans, ByteDance plans to list in either the fourth quarter of this year or early 2022 after raising about $5bn in December at a $180bn valuation.
Since postponing its overseas public listing previous this year, the company has been focused in the last few months to adhere to the data security concerns expressed by Chinese regulators which i9ncluyding handing over more detailed information to the Chinese authorities about how the company stores and manages consumer information, said the report quoting one of the sources.
“We are expecting final guidance from ByteDance in September. They are submitting all the filings with Chinese authorities right now and are going through the review process,” the source was quoted in the report as saying.
There was no official comment available from ByteDance on the issue.
Following Chinese authorities widening a months-long crackdown on the country’s largest tech groups for allegedly violating data security and monopoly laws, ByteDance, whose video app TikTok is incredibly popular in the west, pulled out of its plans for an overseas listing which would have most probably been in the United States.
As a part of the Chinese government’s focus on national security, there will be stricter oversight of overseas listings by the regulators of the country.
The decision of ByteDance to postpone its overseas public listing helped it to generate more goodwill among Chinese regulators unlike the Chinese ride hailing company Didi Chuxing which pushed through a planned $4.4bn initial public offering in New York in June even as internet regulatory authorities in China raised concerns of the data security practices of the company, said the report.
Almost immediately after its IPO, an investigation into Didi was announced by the Cybersecurity Administration of China, and authorities ordered the main app of the company to be removed from Chinese app stores.
A new rule was then released by the regulator according to which, a company that has more than one mission users will need to pass a data security review before being allowed to get listed overseas. The aim of this move by China is to ensure foreign regulators not obtaining sensitive user information.
According to the report, sources said that ByteDance was “in similar meetings as Didi and Full Truck Alliance” with cyber security regulators in China. Regulators are also investing a Chinese truck hailing company, Full Truck Alliance, after the company went public in the United States.
One of the sources was quoted in the report as saying that ByteDance “decided not to continue with a New York listing” after the meetings.
(Source:www.ft.com)
