- LinkDoc has suspended plans for a US IPO, the first to do so after Beijing's crackdown, Reuters reported.
- The Alibaba-backed medical-data firm, which filed for its IPO in June, was set to price its shares Thursday.
- The decision comes after regulators clamped down on Didi, whose shares have fallen 27% post-IPO.
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Chinese medical-data company LinkDoc Technology has suspended its plans for an initial public offering in the US as Beijing cracks down on domestic companies with overseas listings, Reuters reported on Thursday.
LinkDoc, which provides medical data and research to pharmaceutical clients, is the first Chinese company known to have set aside US IPO plans as regulators tighten their grip. The tougher oversight is seen as President Xi Jinping seeking to control one of China's most treasured resources – big data.
On Tuesday, Chinese officials said they would step up scrutiny of cross-border data flow and sources of funding for securities investments, among other market-related measures.
LinkDoc, which filed for its IPO in June, was due to price its offering after the US market close on Thursday. It was seen as raising as much as $211 million by selling 10.8 million shares priced between $17.50 and $19.50, Reuters reported, citing three sources with direct knowledge of the matter.
In a series of events that began on Friday and intensified during the US holiday weekend, China's cybersecurity regulator began investigations into three companies that recently listed in New York – ride-hailing service Didi Global, Uber-like trucking startup Full Truck Alliance, and online-recruitment platform Kanzhun.
Regulators ordered the removal of Didi from app stores on Sunday, days after its New York IPO, saying that the company had been illegitimately collecting and using personal data.
US-listed shares in the tech companies have fallen in the wake of the heightened scrutiny. Didi was last trading 7% lower in Thursday's premarket session, and is down 27% since its IPO.
LinkDoc's decision to suspend its IPO could be followed by other Chinese companies as they may wait for further clarification and pre-approval from different regulators.
The company, whose investors include Alibaba's healthcare subsidiary and Temasek, was being advised by investment banks Morgan Stanley, Bank of America, and China International Capital for its listing, according to the report.
LinkDoc didn't immediately respond to Insider's request for comment.