Chinese ride-hailing platform CaoCao dropped 16.9% in Hong Kong on debut.

On Tuesday, CaoCao, operator of the mainland’s second-largest ride-hailing platform after DiDi, said it would seek to raise more than HK$1.85 billion (US$236.6 million) by selling 44.18 million shares at HK$41.94 each, with trading expected to commence on June 25 under the stock code 02643.

The company planned to allocate 10 per cent of the base offering to Hong Kong investors, with the remaining 90 per cent going to global investors, it said in a filing to Hong Kong’s stock exchange.

Founded in 2015, the Geely-backed company held a 5.4 per cent market share in terms of gross transaction value on the mainland in 2024.

The company said it would use the IPO’s net proceeds to invest in tools and services that help drivers operate more efficiently and safely, develop vehicles designed for ride-hailing, advance autonomous driving, expand its geographical coverage, repay bank borrowings, as well as for working capital and general corporate purposes.