Chinese auto insurance technology platform Cheche Group has recently completed its merger with the Special Purpose Acquisition Company (SPAC) Prime Impact Acquisition I, formerly listed on the New York Stock Exchange. As of Sep.18, the merged entity has become a publicly traded company listed on NASDAQ.
Cheche’s U.S. listing represents the first case of a VIE structure overseas listing project completed under the Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies. According to the China Securities Regulatory Commission (CSRC) website, Cheche received its approval on September 14.
Wilson Sonsini Goodrich & Rosati, Han Kun Law Offices, and Harney Westwood & Riegels acted as legal counsel for Cheche, while Goodwin Procter, Zhong Lun Law Firm, and Maples and Calder (Cayman) provided legal advice to Prime Impact.
Jingtian & Gongcheng provided legal advice to the investor World Dynamic.
Cheche Group, founded in 2014, aims to transform China's auto insurance market and digitise the end-to-end insurance purchasing process in a transparent, universal, and efficient manner. Currently, Cheche has 130 service centres nationwide, with research and development centres located in Beijing and Guangzhou.
Prime Impact, which went public on the NYSE in September 2020, primarily targeted innovative, data-centric technology companies in major Asian markets, especially the Greater China region.
The estimated enterprise value of the merged entity is approximately $841 million. On its first day of trading, Cheche's stock price surged by 581.82 percent, resulting in a total market capitalisation of $5.962 billion.
The Wilson team was led by partner Ouyang Dan of the corporate group, with tax advice provided by partner Myra A. Sutanto Shen.
The Zhong Lun team was led by partner Cheng Bo, with support from non-equity partner Dai Wen. Partners Zhao Bingyin and Li Rui also offered expert advice in the areas of insurance compliance and data compliance.
The Han Kun team assisted Cheche in completing the CSRC's overseas listing record filing in the transaction.