China trucking startup files confidentially for U.S. IPO

China’s Uber-like startup Full Truck Alliance has confidentially filed for an initial public offering that could raise at least $1 billion as soon as this year, according to people familiar with the matter.

The startup backed by Tencent Holdings Ltd. handed in its IPO filing in the U.S. recently, the people said, requesting not to be named because the matter is private. Full Truck Alliance is working with Morgan Stanley and China International Capital Corp. on its American debut after eking out a slim 2020 profit thanks to a pandemic-era shipping surge, people familiar have said.

The company, known as Manbang in Chinese, was aiming to raise $1 billion to $2 billion in the IPO, people familiar said in January. A representative for Full Truck Alliance didn’t respond to an emailed request and text message seeking comment.

Manbang, backed by SoftBank Group Corp., faces stiffening competition as smaller rivals try to win a slice of an evolving market. Giants from car-hailing leader Didi Chuxing Technology Co. to Alibaba Group Holding Ltd. are now introducing technology to try and streamline the shipping process, connecting merchants with truckers and delivery firms.

Formed by a merger between China’s two largest truck-sharing platforms—Huochebang and Yunmanman—Manbang has attracted a roster of backers including Alphabet Inc.’s CapitalG, Sequoia Capital China, Fidelity International and Jack Ma’s Yunfeng Capital. Manbang last raised $1.7 billion from investors including SoftBank and Tencent at a $12 billion valuation. It aimed to use the cash to expand into same-city deliveries, deepening a network now focused on ferrying goods between urban centers.