Credit Suisse out of Tencent-backed WeDoctor’s Hong Kong IPO after Luckin Coffee’s accounting scandal
- WeDoctor plans to raise US$700-800 million from Hong Kong IPO
- Credit Suisse was among underwriters of Luckin Coffee IPO in May
Credit Suisse has dropped out as a sponsor of a planned listing by Tencent-backed WeDoctor, a person familiar with the matter said on Monday, allowing more Asia-based investment banks to grab a role in the deal.
The Swiss bank’s move is a blow to Hangzhou-based WeDoctor’s plans to raise US$700 million to US$800 million in a Hong Kong listing, the person added. The decision comes as lawyers and regulators scrutinise the bank’s work for the listing of Luckin Coffee in May last year.
Credit Suisse was among the underwriters of Luckin Coffee’s Nasdaq IPO last year. The Chinese company and has been hit by multiple lawsuits from shareholders. Luckin Coffee's IPO other bookrunners were Morgan Stanley and China International Capital Corporation and Haitong. KeyBanc Capital Markets and Needham were co-managers.
A Credit Suisse spokeswoman declined to comment on the bank’s roles in WeDoctor and Luckin Coffee’s IPOs. WeDoctor did not respond to an emailed request for comment.