(Bloomberg) — Beijing Smart Walnut Education Technology Co., a provider of services that help children learn to code, is one of several Chinese firms considering initial public offerings in the US despite market turmoil and friction between Washington and Beijing, according to people familiar with the matter.
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Walnut Coding, as Beijing Smart Walnut Education Technology is known, could seek to raise about $100 million in a US listing, the people said, asking not to be identified because the deliberations are private.
Others exploring listings include computing infrastructure provider Shenzhen Cloudsky Technologies Co. and software service platforms Zaihui and Zhonghe Group, the people said. They may also seek to raise about $100 million each.
The IPO plans are developing even with the threat of potential delistings coming from the US, with Treasury Secretary Scott Bessent recently saying all options are “on the table” when asked about the matter amid trade negotiations with China. The Nasdaq Golden Dragon China Index, a gauge of US-listed Chinese firms, has sunk 23% since March 17, while the S&P 500 is down 9% in that time.
No final decisions on the share sales have been made and the companies may decide not to proceed, the people said.
A representative for Walnut Coding, which has backers including private equity firms KKR & Co. (KKR) and Hillhouse Investment, declined to comment. Zaihui, Zhonghe and Cloudsky didn’t respond to requests seeking comment.
Fewer Chinese companies have listed in the US since Didi Global Inc.’s ill-fated share sale in 2021, which sparked a regulatory crackdown on the country’s internet industry and an order for the ride-hailing firm to delist.
The US market’s high liquidity is a lure for Chinese companies, while investment banks can earn higher fees on share sales than in other venues such as Hong Kong.
Tea chain Chagee Holdings Ltd. raised $411 million this month after pricing its US IPO at the top end of the marketed range, defying the trade-war volatility. Its shares jumped 16% on their debut.
—With assistance from Manuel Baigorri.
(Updates with delisting threat in fourth paragraph and adds chart.)
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