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Jianzhi Education tests regulatory waters with first US IPO bid by Chinese online firm after Didi crackdown
- Online education firm Jianzhi is the first Chinese firm to file for an offshore listing since Beijing slapped new rules after the Didi Chuxing debacle
- Proposed cybersecurity review by Beijing is listed as a ‘risk factor’ in Jianzhi’s US exchange filing
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Jianzhi Education Technology Group has become the first Chinese company to apply for a US flotation since Beijing proposed new rules to tighten scrutiny on offshore listings after the Didi Chuxing debacle. This is the company’s fifth attempt at an offshore stock offering, after four previous tries in Hong Kong failed.
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The Beijing-based provider of online vocational education has proposed to raise up to US$50 million through the sale of American depositary shares, according to its filing to the US securities regulator. The firm did not specify which exchange it seeks to list its shares.
Didi Chuxing’s US$4.4 billion IPO on the New York Stock Exchange on June 30 triggered a wave of reviews and clampdown on its China’s operations by the Cyberspace Administration of China, after the ride-hailing operator ignored data security concerns expressed by the CAC. Last Saturday, the regulator proposed a set of draft rules seeking to subject Chinese tech companies to additional cybersecurity reviews to qualify for an offshore IPO.
Following the latest regulatory development in China, Jianzhi Education has included cybersecurity reviews as part of its “risk factors” in the US filing.
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“We offer our mobile and desktop applications in China, and we could be subject to cybersecurity review in the future. During such review, we may be required to suspend new user registration in China and experience other disruptions to our operations,” it said.
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