On Wednesday, several Chinese media outlets reported that Full Truck Alliance is planning a second listing in Hong Kong, and will submit a formal application as soon as this month. The company plans to raise about $1 billion dollars through the IPO.
The reports quoted sources as saying that Full Truck Alliance has invited Morgan Stanley, Goldman Sachs, UBS and Huatai International to take charge of the listing in Hong Kong. The company was previously listed in the US in June 2021.
Established in November 2017, Full Truck Alliance originated from Yunmanman and Huochebang. It is committed to establishing a digital freight transportation platform for China’s road freight industry, and provides information on matching vehicles and cargo and value-added services through an app. Earlier, however, the company was interviewed by Chinese regulators for outstanding issues such as unreasonable pricing and unfair operations.
According to Chinese commercial data platform Qichacha, Full Truck Alliance has completed two rounds of financing. In April 2018, it received $1.9 billion in strategic financing, and in November 2020, it obtained another $1.7 billion. And after the second round of financing, it began to invest heavily in its intracity freight business.
Data show Full Truck Alliance reported 2019 revenue of $2.47 billion, 2020 revenue of $2.58 billion, non-GAAP net income of $281 million, full-year GTV (total platform transaction volume) of $173.8 billion, and order volume of 71.7 million units.
Updated earnings data show that Full Truck Alliance recorded total revenue of 1.24 billion yuan in Q3 2021, up 68.9% year-on-year. In Q3, the GTV amounted to 67.3 billion yuan, up 48.8% year-on-year, and the number of fulfilled orders reached 35.3 million, up 78.4% year-on-year. In particular, revenue from the firm’s freight matching service, its core business segment, reached 1.09 billion yuan, up 102.6% year-on-year. The average monthly active cargo owners on the platform reached 1.61 million, an increase of 32.2% year-on-year.