China’s used-car trading platform Youxin has filed for an IPO listing on the Nasdaq stock market with the US Securities and Exchange Commission, which could raise up to US$500 million, Yicia.com reported.

Founded in 2011, the company’s portfolio mainly covers B2B and B2C used car trading platforms. In 2017, the GMV (gross merchandise volume) on its platforms reached 43.4 billion yuan, an increase of 66.9% from a year earlier. While the transaction volume hit 634,000 units, a rise of 67.9%.

According to the third-party data firm iResearch, based on the GMV and transaction volume, Youxin accounted for 41% of the overall used-car e-commerce market share, ranking first in the industry.

Zhong Shi, an automotive industry analyst, thinks the turnover of the used-car market in China is on the upswing, but there is still a gap compared with other countries.

This could also be one of the reasons why Chinese used car companies are heavily favored by capital investors. If Youxin is listed successfully, its standing will improve, which will inevitably put pressure on its domestic competitors.