Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Pre-IPO ESG Analysis of Full Truck Alliance: Strong ESG Profile... But With One Potential Landmine

Full Truck Alliance Pre-IPO - The Negatives - Still a Mixed Bag

Full Truck Alliance IPO Initiation: A Less than Perfect Delivery

Full Truck Alliance IPO: In Early Stage of Monetisation

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Equity Capital Markets

Full Truck Alliance   / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/full-truck-alliance" target="_blank" data-smartkarma-citation="entities:33429:1" rel="noopener">Full Truck Alliance (YMM US)</a> is getting ready to complete its IPO on the NYSE in the coming weeks. The company plans to raise up to $1.5 billion in this IPO. The company is seeking valuation ranging from <a href="https://www.reuters.com/world/china/chinas-full-truck-alliance-files-15-bln-us-ipo-2021-05-28/" target="_blank" rel="noopener">$20 billion </a>to $30 billion. Full Truck Alliance is also known as Manbang Group in China.In 4Q 2020, <a href="https://techcrunch.com/2021/05/31/the-station-rivian-rolls-towards-an-ipo-and-quantumscape-makes-a-big-battery-hire/?guccounter=1&amp;guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&amp;guce_referrer_sig=AQAAADdx8mjy6_A1n9ynGk-dK54HhWG3dMFCBLiwA2nATHGBHOIHwnuUVqNAlFX0VyzIlh1C78BZEDtZg3WcdBi00wyLXYSOc54-Kcv4cuC9MdGcR4eUzOgLJ5sGb1zEdhjpanU-HVQEyRR9rJIH4vKDUuYoGm1Glp0CscoW6wo9HF51" target="_blank" rel="noopener">Full Truck Alliance</a> raised $3.6 billion in a private funding, at an $11.7 billion valuation. Key investors of Full Truck Alliance include SoftBank Vision Fund (22.2% pre-IPO stake), Sequoia Capital China (7.2%), Permira, Tencent, Hillhouse Capital, GGV Capital, Lightspeed China Partners and Baillie Gifford. The company's sales increased by 4.4% YoY to reach 2,580.8 million RMB in 2020 and its sales surged by 97.7% YoY to reach 867.2 million RMB in 1Q 2021. Loss from operations as a percentage of revenues worsened from -41.3% in 2019 to -140.1% in 2020. However, the company enjoyed a surging growth in sales with a major improvement in profit margins in 1Q 2021. Loss from operations as a percentage of revenues improved from -28% in 1Q 2020 to -23.3% in 1Q 2021. This was driven by improving G&amp;A and R&amp;D expenses as a percentage of revenues in 1Q 2021.

Full Truck Alliance (YMM US) is getting ready to complete its IPO on the NYSE in the coming weeks. The company plans to raise up to $1.5 billion in this IPO. The company is seeking valuation ranging from $20 billion to $30 billion. Full Truck Alliance is also known as Manbang Group in China.In 4Q 2020, Full Truck Alliance raised $3.6 billion in a private funding, at an $11.7 billion valuation. Key investors of Full Truck Alliance include SoftBank Vision Fund (22.2% pre-IPO stake), Sequoia Capital China (7.2%), Permira, Tencent, Hillhouse Capital, GGV Capital, Lightspeed China Partners and Baillie Gifford. The company's sales increased by 4.4% YoY to reach 2,580.8 million RMB in 2020 and its sales surged by 97.7% YoY to reach 867.2 million RMB in 1Q 2021. Loss from operations as a percentage of revenues worsened from -41.3% in 2019 to -140.1% in 2020. However, the company enjoyed a surging growth in sales with a major improvement in profit margins in 1Q 2021. Loss from operations as a percentage of revenues improved from -28% in 1Q 2020 to -23.3% in 1Q 2021. This was driven by improving G&amp;A and R&amp;D expenses as a percentage of revenues in 1Q 2021. 

Full Truck Alliance

Full Truck Alliance IPO Preview