SKADDEN, ARPS, SLATE, MEAGHER & FLOM
PARTNERS CHRISTOPHER W. BETTS GEOFFREY CHAN * SHU DU * ANDREW L. FOSTER * CHI T. STEVE KWOK * EDWARD H.P. LAM ¨* HAIPING LI * RORY MCALPINE ¨ JONATHAN B. STONE * PALOMA P. WANG
¨ (ALSO ADMITTED IN ENGLAND & WALES) * (ALSO ADMITTED IN NEW YORK)
REGISTERED FOREIGN LAWYER Z. JULIE GAO (CALIFORNIA) |
世達國際律師事務所 42/F, EDINBURGH TOWER, THE LANDMARK 15 QUEENS ROAD CENTRAL, HONG KONG
TEL: (852) 3740-4700 FAX: (852) 3740-4727 www.skadden.com
March 22, 2021 |
AFFILIATE OFFICES
BOSTON CHICAGO HOUSTON LOS ANGELES NEW YORK PALO ALTO WASHINGTON, D.C. WILMINGTON
BEIJING BRUSSELS FRANKFURT LONDON MOSCOW MUNICH PARIS SÃO PAULO SEOUL SHANGHAI SINGAPORE TOKYO TORONTO |
VIA EDGAR
Ms. Erin Jaskot
Ms. Cara Wirth
Ms. Linda Cvrkel
Mr. Robert Shapiro
Division of Corporation Finance
Office of Trade & Services
U.S. Securities and Exchange Commission
100 F Street, NE
Washington, D.C. 20549
Re: |
Smart Share Global Limited |
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CIK No. 0001834253 |
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Amendment No. 1 to the Registration Statement on Form F-1 |
Dear Ms. Jaskot, Ms. Wirth, Ms. Cvrkel and Mr. Shapiro:
On behalf of our client, Smart Share Global Limited, a foreign private issuer organized under the laws of the Cayman Islands (the Company), we submit to the staff (the Staff) of the Securities and Exchange Commission (the Commission) this letter setting forth the Companys responses to the comments contained in the Staffs letter dated March 18, 2021 on the Companys registration statement on Form F-1 initially filed on March 12, 2021.
Concurrently with the submission of this letter, the Company is filing herewith the amendment No. 1 (Amendment No. 1) to the Companys registration statement on Form F-1 and certain exhibits via EDGAR to the Commission.
The Staffs comments are repeated below in bold and are followed by the Companys responses. We have included page references in Amendment No. 1 where the language addressing a particular comment appears. Capitalized terms used but not otherwise defined herein have the meanings set forth in Amendment No. 1.
The Company respectfully advises the staff that the Company plans to commence the road show for the offering on or about March 29, 2021 and to request that the Staff declare the effectiveness of the Registration Statement on or about March 31, 2021. The Company will file joint acceleration requests in time before the requested effective time. The Company would appreciate the Staffs timely assistance and support to the Company in meeting the proposed timetable for the offering.
Prospectus Summary, page 4
1. We note your response to our prior comment 3 and reissue it. While your disclosure of POIs in each tiered city is helpful, it does not directly address your claims regarding your extensive network in a meaningful way. You also state that the POIs are in more than 1,500 regions in China, but it is unclear how you are defining region and what this means regarding overall geographic coverage. Please provide additional disclosure on your extensive coverage network, such as the average number of POIs in each province of China, so that investors understand the geographic distribution of your network.
In response to the Staffs comment, the Company has revised pages 1, 99, 129 and 130 of Amendment No. 1 to change to the term regions to counties and county-level districts, included the total number of counties and county-level districts in China, and added the definition of counties and county-level districts on pages 10 and 11. The Company has also revised page 130 of Amendment No. 1 to include the number of POIs that the Companys cabinets cover in different parts of China.
The Company respectfully advises the Staff that the Company considers the precision and extensiveness of its POI coverage in selected counties and county-level districts as one of the Companys key competitive advantage. The details of the Companys POI geographic coverage are commercially sensitive, the disclosure of which could lead to adverse competition impact on the Company and such information is not material to investors.
The Company strategically and dynamically evaluates its expansion into different counties and county-level districts, including timing and extensiveness of geography penetration based on its industry and operations expertise. The Company may choose to focus on certain geographic areas first before entering
into other areas. If the Company discloses the exact geographic distribution of its POIs, a competitor may discern the Companys expansion strategy from such disclosure and hinder the Companys future expansion plans. A potential competitor may attempt to emulate the Companys knowhow on POI site selection and invest heavily in counties and county-level districts that the Company identifies as having growth potential, which may be currently under-penetrated. Such action could adversely affect the Companys future operating strategy and market opportunities.
Capitalization, page 84
2. Please revise the second and third bullet points to disclose the amount of proceeds received in connection with the issuance of the 76,386,109 Series D-2 preferred shares in January 2021. Also, it is unclear as to how you arrived at the pro forma amounts of the issued and outstanding Class A Ordinary shares (in both shares and RMB) and additional paid in capital as of December 31, 2020. Please revise to provide footnote disclosure in tabular format explaining how these amounts were calculated or determined.
In response to the Staffs comments, the Company has revised pages 84, 86 and 87 of Amendment No. 1 to explain how the referenced amounts are calculated.
Management Expertise, page 137
3. We note your response to our prior comment 8. Please revise to disclose whether you have the largest market share in the mobile device charging space. If not, please tell us how you rank compared to your competitors and the market share held by your closest competitors.
In response to the Staffs comments, the Company has revised page 139 of Amendment No. 1 to disclose that it is the largest mobile device charging service provider by gross revenue in 2020.
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If you have any questions regarding Amendment No. 1, please contact the undersigned by phone at +852 3740 4863 or via e-mail at julie.gao@skadden.com, or Kevin Song, partner at PricewaterhouseCoopers Zhong Tian LLP, by telephone at +86 10 2323 3196 or via email at kevin.song@cn.pwc.com. PricewaterhouseCoopers Zhong Tian LLP is the independent registered public accounting firm of the Company.
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Very truly yours, |
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/s/ Z. Julie Gao |
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Z. Julie Gao |
Enclosures
cc: |
Mars Cai, Chief Executive Officer, Smart Share Global Limited |
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Maria Xin, Chief Financial Officer, Smart Share Global Limited |
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Haiping Li, Esq., Partner, Skadden, Arps, Slate, Meagher & Flom LLP |
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Will H. Cai, Esq., Partner, Cooley LLP |
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Michael Yu, Esq., Partner, Cooley LLP |
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Dave Peinsipp, Esq., Partner, Cooley LLP |
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Kevin Song, Partner, PricewaterhouseCoopers Zhong Tian LLP |