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From East to West, Evergrande to IPO in the USINTL

From East to West, Evergrande to IPO in the US

Evergrand’s online arm is reportedly considering an initial public offering in the US before the end of the year. Evergrand’s home and car sales platform, FCB Group, could put on a stellar stock market debut in America, considering that its online portal alone is worth around $20b.

Evergrande was one of the first Chinese companies in the real estate sphere to turn to online home-selling once Covid-19 hit. Their FCB platform has over 21 million property agents and moves as much as 1.2 trillion yuan every year.

It looks like the deal is still in early stages, but FCB has reportedly reached out to different potential investors for the classic pre-IPO funding round. Besides, Evergrande needs to make sure it’s following Chinese regulation by bringing its debt down, so this IPO would give it a much-needed financial boost.

why it matters
Companies that have managed to successfully navigate e-commerce during the pandemic are bound to make some serious dollars in the public markets. Real estate platform KE Holdings (BEKE) raised a whopping $2.4b in its own US IPO last year; so, Evergrande’s FCB has the potential to become a box-office hit sequel.