Chinese insurance broker Yuanbao plans US IPO

Chinese insurance broker Yuanbao filed on Tuesday for an initial public offering in the United States. This move reflects a growing trend of Chinese companies seeking to raise capital in US markets.

The IPO comes amidst a resurgence in investor interest in new listings, fueled by strong performances from companies like Reddit and a broader rally in equities. However, the number of US IPOs by Chinese companies has declined in recent years due to regulatory restrictions.

Yuanbao, a data-driven online insurance distributor, has experienced significant growth in its business. In 2023, the company’s revenue surged to $289 million, and first-year premiums more than doubled to $2.48 billion.

Goldman Sachs, Citigroup, and CICC are leading the IPO underwriting. Yuanbao plans to list its American depositary shares on the Nasdaq under the ticker symbol “YB.”

Attribution: Reuters