TikTok owner ByteDance Ltd to address data-security risks, the firm has put on hold its intentions to list offshore for indefinite period, reported Bloomberg.
ByteDance Ltd founder Zhang Yiming in late March 2021 had decided to shelve his plans to file for a IPO following his firm's representatives meeting with cyberspace and securities regulators. Though he didn't attend the meeting, his firm was asked to asked to focus on addressing data-security risks and other issues.
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Report added that the firm even delayed the listing as it didn’t have a chief financial officer at the time. Meanwhile, ByteDance is working to ensure it complies with data security requirements.
China, in the meantime, on July 9 proposed new laws that will require virtually all firms heading for an IPO outside of China to undergo a cybersecurity review. Due to this, firms seeking to raise capital in overseas markets are now facing greater scrutiny.
Despite Didi Global Inc had gone ahead to list in New York in June, it was asked by the Chinese regulators to delay the debut about three months ago. Following Didi's listing, Chinese authorities have commenced a cybersecurity probe on it and had removed its services from Chinese app stores.
Earlier in April, ByteDance was considering to raise several billion dollars from a listing of its Chinese assets. It had also hired Xiaomi Corp's CFO Shou Zi Chew in March fueling speculation an IPO. However, the restrictions by Chinese authorities have delayed their plans. Later, the firm said in a statement that they didn’t meet the conditions to go public and added currently didn’t have any such plans.
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