Citi had been hired as the second bookrunner on the Chinese group’s IPO, but as both sides could not reach an agreement on the underwriting fees, the IPO arranger dropped out, citing people familiar with the matter.
Morgan Stanley, UBS, China International Capital Corp, and AMTD Global Markets Limited were listed as joint book-runners for Fangdd’s IPO.
Fangd had cut the number of shares it sold in its IPO from seven million to six million ase= demand for its stock during its roadshow was soft.
DouYu International Holdings, which raised $775 million in July, is the biggest US IPO of a Chinese company this year while four deals from last year topped $1 billion, according to data compiled by Bloomberg.
U.S. offerings typically pay a higher percentage in IPO fees compared to most Asian countries. However, U.S. IPOs of Chinese companies have shrunk in size this year as investors grew wary about the tensions between U.S. and China, reducing fees for Asian investment bankers.
Chinese companies raised $2.9 billion in the US this year, down from the $7.9 billion raised during the same time last year.
