China’s LinkDoc shelves U.S. IPO plans

Sources with direct knowledge of the matter have revealed that Chinese medical data group LinkDoc Technology Ltd has shelved plans for an IPO in the United States following Beijing’s clampdown on overseas listings by domestic firms.

It is the first known Chinese firm to pull back from its IPO plans since the crackdown began last week with an investigation by China’s cybersecurity regulator into ride-hailing giant Didi Global Inc just two days after it made its New York debut.

Beijing said on Tuesday that it would strengthen supervision of all Chinese firms listed offshore, a sweeping regulatory shift that triggered a sell-off in U.S.-listed Chinese stocks.

The decision to pull the LinkDoc deal was due to the crackdown, the sources said.

LinkDoc filed for an initial public offering in the United States last month and was due to price its shares after the U.S. market close on Thursday.

It had planned to sell 10.8 million shares between $17.50 and $19.50 each. The deal would have raised $211 million at the upper end of the indicated range. The book closed one day earlier than planned on Wednesday, two of the sources said.