What happened: Media giant Bytedance has reportedly been contacted by authorities for a potential IPO on the Technology Innovation Board in Shanghai, South China Morning Post reported, quoting people familiar with the matter. The people also said Bytedance is not as eager to go public as it was at the end of 2018, saying that the company doesn’t want to draw greater public scrutiny and is considering other means of raising capital.
Why it’s important: Before the Shanghai tech board opportunity came up, Bytedance was considering going public in either New York or Hong Kong, according to SCMP. The recently added option of going public on Shanghai’s tech board could prove to be both an opportunity and a threat to the owner of Jinri Toutiao and Douyin, also known as TikTok. While the board promises looser trading limits than others in China, going public on it could place Bytedance under further scrutiny from both the Chinese public and the Chinese government.