Tuhu Car, an automotive services company backed by Chinese technology giant Tencent Holdings (HKG:0700, OTC:TCEHY), is likely to price its initial public offering at the bottom of its marketed range, according to reports.
The Shanghai-based company could price its shares at 28 Hong Kong dollars each, raising the equivalent of $145.5 million, less than half the original hopes.
Tuhu provides services to car owners in China, offering replacements for tires and chassis parts and services such as maintenance, repair and detailing.
The company, which had 17.1 million transacting users in the 12 months ended March, recorded a loss of $38.2 million on revenue of $447.7 million in the first quarter.
Apart from Tencent, its backers include Carlyle Group and Sequoia China.
At one point last year, Tuhu was planning to raise up to $400 million from its offering, The Wall Street Journal reported.
The shares are expected to start trading in Hong Kong on September 26.