Chinese startup Full Truck Alliance to launch $1.5 billion IPO -source

BEIJING (Reuters) - Chinese startup Full Truck Alliance aims to raise around $1.5 billion from its initial public offering in New York which will value the company at more than $20 billion, a source familiar with the matter said on Tuesday.

CNBC reported earlier on Tuesday that Full Truck Alliance could file for a U.S. listing as early as this week.

Full Truck Alliance, the result of a 2017 merger between truck service platforms Yunmanman and Huochebang, connects drivers with truck owners and their mutual client base. The company, often described as China’s “Uber for trucks”, is backed by Tencent and SoftBank.

Full Truck Alliance declined to comment. The person declined to be identified as the information is confidential.

The company, which has over 10 million registered truck drivers and more than 5 million truck owners on its platform, plans to use the funds for technology, service and business model innovations.

On-demand logistics service in China is crowded, with Manbang, Huolala and Kuaigou as market leaders. Didi Chuxing is also offering a logistics service.

Plus, a startup working on autonomous driving trucks in which Full Truck Alliance has an investment, said on Monday it would go public through a merger with blank-check company Hennessy Capital Investment Corp V in a deal that values the self-driving truck technology startup at $3.3 billion.

Reporting by Yilei Sun and Tony Munroe; editing by Emelia Sithole-Matarise