Singapore’s Ryde completes secondary listings in Germany, eyes investors in Europe
RIDE-HAILING and carpooling company Ryde has completed its secondary listings on the Frankfurt and Stuttgart stock exchanges as it seeks to gain exposure to more investors in Europe.
Ryde, which did not raise any funds as part of the listings on Friday (Jun 7), closed at US$6.89 on the same day with 50 shares changing hands across both exchanges.
It has a primary listing on the New York Stock Exchange (NYSE), where it has a current market capitalisation of around US$133.5 million. It made its debut on the NYSE on Mar 6 and raised US$12 million through the sale of three million ordinary shares priced at US$4 apiece.
Ryde founder and chief executive Terence Zou said that by listing on the German stock exchanges, the firm is expanding its customer base and making its “unique value proposition” more accessible to the European markets.
He added that the firm is appointing new investor relations advisers focused on the German market, telling The Straits Times on Jun 10: “The German listings are the next step in our listed company’s journey. By having a presence in Europe and the United States, Ryde positions itself to capitalise on the global investor base across different markets.”
Ryde currently operates in Singapore. Zou did not elaborate on whether Ryde intends to offer its ride-hailing services in Europe.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Ryde’s listings come amid its cash burn and widening losses in recent years. The company posted revenue of S$8.8 million in 2022, primarily driven by its carpooling and ride-hailing services, which accounted for about three-quarters of its total revenue. The remaining revenue of about S$2.2 million came from advertising and the firm’s Ryde+ membership.
But it registered widening losses of S$1.24 million in 2021 and S$4.96 million in 2022. It also incurred a loss of nearly S$4 million for the six months ended June 2023.
Ryde’s initial public offering (IPO) prospectus in August 2023 noted that its accounting firm raised “doubt about the company’s ability to continue as a going concern” as its working capital stood at negative S$461,000 and its shareholders’ deficiency was close to S$5 million as at the end of 2022.
A negative working capital and a shareholders’ deficiency mean that a company has more liabilities than assets.
In 2021, Ryde announced plans to list on the Singapore Exchange’s Catalist board in March 2022 with a targeted valuation of S$200 million, but no prospectus was lodged then.
Ryde shares are currently trading at more than 70 per cent above its IPO price of USS$4. THE STRAITS TIMES
Share with us your feedback on BT's products and services
