BRIEF: Ride-hailing platform CaoCao launches $236 million IPO

Ride-hailing platform CaoCao Inc. (2643.HK) on Tuesday launched its Hong Kong IPO, aiming to sell 44.18 million shares at HK$41.94 apiece  to raise about HK$1.85 billion ($236 million). Share subscriptions will close on June 20, with a trading debut set for June 25.

The company reported 2024 revenue of 14.66 billion yuan, up 37.4% year-over-year, but recorded an annual loss of 1.25 billion yuan. By the end of last year, CaoCao had a dedicated fleet of more than 34,000 vehicles serving 31 cities. Its monthly active users grew 49.5% year-over-year in 2024 to approximately 28.7 million, while daily orders increased 33.2% to 1.63 million. Average hourly income for its drivers fell 1.1% last year to 35.7 yuan.

The company plans to use about 20% of the IPO proceeds to repay bank loans, 19% to improve its vehicle service solutions and service quality, 18% to enhance and launch custom vehicles, 17% to upgrade technology and invest in autonomous driving, 16% to expand its geographical coverage and the remaining 10% for general working capital.

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