- Shares drop nearly 46% on first trading day in latest weak China listing
- Used-car platform highlights continued volatility in offshore listings
Dasouche Holdings (大搜车), a Hangzhou-based online marketplace for second-hand cars, made its debut on the Nasdaq on June 25, becoming the first Chinese company to list in the US in 2026.
However, the stock plunged on its first day of trading, underscoring continued weakness in Chinese listings in US markets.
The company, trading under the ticker symbol DSC, closed at about $9.06 per share, down roughly 46% from its IPO price of $17, giving it a market capitalization of around $454 million.
The decline marked one of the steepest first-day drops for a Chinese listing in recent years.
Ant Group as the cornerstone investor
Dasouche sold 3 million American Depositary Shares in the offering, pricing at the top end of its $16-$18 range and raising approximately $51 million. The deal implied a fully diluted valuation of about $905 million.
Alibaba-affiliated Ant Group subscribed to up to $30 million worth of shares, accounting for roughly 59% of the offering and providing a key anchor investor presence.
Founded in 2012 and headquartered in Hangzhou, Dasouche focuses on digitizing China’s used-car circulation and transaction services.
The company positions itself as a “digital-first, transaction-enabled” platform, with its systems covering more than 50% of China’s pre-owned car inventory by vehicle identification number, it said.
It had about 228,000 active users and more than 30,000 monetized dealerships as of 2025, according to the prospectus.
Markdowns for late-stage investors
Financial filings show revenue of 909 million yuan ($134 million) in 2023, 948 million yuan in 2024 and 677 million yuan in 2025, with the latest year marking a 28.6% decline following the company’s decision to divest its B2B financing referral business.
Net losses narrowed over the period to 94.6 million yuan in 2025, with fourth-quarter losses shrinking to just 6.16 million yuan, nearing breakeven.
Between 2016 and 2018, Dasouche raised multiple funding rounds from investors including Ant Group, Warburg Pincus, Primavera Capital and 5Y Capital, accumulating roughly $1.2 billion in total investment.
At its peak following the Series F financing round, the company was valued at around $3.5 billion. This means later-stage investors have seen significant markdowns following restructuring and business contraction.
Symbolic reopening of the US window
Despite the sharp debut, the listing is still seen as symbolically important, marking a rare reopening of the US IPO window for Chinese firms after months of inactivity.
This milestone also provides a potential reference point for other mainland companies seeking offshore listings in the US.
The IPO also came after China’s securities regulator gave the green light to Dasouche’s overseas listing filing on April 24, ending a period of absence for US-bound IPO approvals in 2026.
