Key facts
- DSC Holdings, a Chinese provider of operating systems for used car dealers, is targeting a valuation of up to $901 million in its U.S. IPO.
- The company plans to offer 3 million American depositary shares at a price range of $16 to $18 each.
- Ant Group's investment arm, API (Hong Kong) Investment, intends to buy up to $30 million of shares.
- DSC Holdings holds over 90% market share in operating systems for China's used car dealers.
- The company's flagship digitalization tool is DaFengChe, which covers various aspects of the used car business.
China's DSC Holdings, a provider of operating systems for used car dealers, is aiming for a valuation of up to $901 million in its U.S. initial public offering. The company plans to offer 3 million American depositary shares, with prices set between $16 and $18 each, potentially raising up to $54 million.
Founded in 2012, DSC Holdings, also known as Dasouche, offers digitalization tools and transaction services to the Chinese used car market. Its flagship product, DaFengChe, is a free digitalization tool for dealers, covering inventory sourcing, management, marketing, sales, and business analysis. The company claims over 90% market share in operating systems for China's used car dealers, according to data from CIC.
This IPO marks a potential return for Chinese companies to U.S. listings after a period of geopolitical tension and increased scrutiny from Beijing on offshore IPOs. The China Securities Regulatory Commission's approval in April was the first for a U.S. listing application in four months.
Backers of DSC include venture capital firm 5Y Capital, investment firm Primavera Capital, and Ant Group. API (Hong Kong) Investment, a subsidiary of Ant Group, is expected to purchase up to $30 million of DSC shares as part of the offering. Deutsche Bank, CICC, CR Global Markets, and ICBC International are serving as underwriters for the Nasdaq listing under the symbol "DSC."