HONG KONG: Chinese online healthcare platform WeDoctor has dropped Credit Suisse from a list of banks it had lined up to lead its up-to US$1bil initial public offering (IPO) in Hong Kong, sources told Reuters.
WeDoctor’s decision comes days after China’s securities regulator said it would investigate claims of fraud at coffee startup Luckin Coffee where an internal investigation had found that its chief operating officer and other staff fabricated sales transactions worth 2.2 billion yuan.
Credit Suisse, together with Morgan Stanley, CICC and Haitong International Securities, worked on Luckin Coffee’s US$645mil US IPO in May last year.
“WeDoctor’s executives have concerns over Credit Suisse’s role in Luckin-related deals. Given uncertainty over the outcome, the bank is probably no longer suitable to work on WeDoctor’s IPO, ” said a source, who declined to be named.
Credit Suisse declined to comment.
WeDoctor said: “WeDoctor is scrupulous in our consideration of partners. A selection of sponsors is under way and a final decision has not been made.” WeDoctor declined to comment further on its IPO plans.
CICC and Morgan Stanley have begun informal investigations into the due diligence they did for the Luckin IPO since the Chinese coffee chain’s announcement on Thursday, Reuters reported last week, citing sources. These two banks, Haitong and Credit Suisse had declined to comment last week. — Reuters
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