CHINA’S Hello Inc., an app-based ride services provider backed by Jack Ma’s Ant Group, has scrapped plans for an initial public offering (IPO) in the United States.

The move comes against the backdrop of a regulatory action taken by Chinese regulators that tightens listings by Chinese companies in the United States.

Hello, which offers services in China including two-wheeler services and a carpooling marketplace, said Tuesday that it no longer wishes to publicly float its shares in the United States, according to a regulatory filing. It didn’t provide further details.

The Shanghai-based startup first disclosed its IPO plans in April. Credit Suisse Group AG, Morgan Stanley and China International Capital Corp. had been lined up to serve as underwriters for the offering. The company is valued at about US$5 billion, according to data provider CB Insights.

The flow of Chinese companies to the United States has long been a lucrative machine for Wall Street banks who underwrite the deals, and 2021 had already become the second-best year on record for such listings. Chinese companies have raised US$15.7 billion so far this year from U.S. listings, more than the entire amount of 2020.

While several firms have paused their listing plans or are considering alternative listing venues, Hello is the first major Chinese company to officially withdraw its U.S. IPO filing.

Hello is one of the few firms to survive China’s bike-sharing bubble, which attracted billions of dollars in investment at its height. Its investors include Ant, GGV Capital and Youon Technology Co. (SD-Agencies)