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Corporate Finance
Meituan Dianping values initial public offering at up to US$55bn
May 20, 2020
undefined mins
Meituan Dianping, Beijing-based online food delivery-to-ticketing platform, is readying to launch an IPO in Hong Kong with an indicative price per share of HK$60-72
Likened to US-based Groupon by Forbes, Meituan Dianping has valued itself at a total of up to US$55bn, Reuters said.
The company is the result of a $15bn merger between Meituan and Dianping in 2015, and offers services which include ride-hailing, food delivery, hotel booking, and movie ticketing.
In its last round of fundraising, the company was valued at $30bn.
As reported by South China Morning Post (SCMP), Meituan Dianping is one of the most valuable internet companies in China, and it “could raise as much as US$4bn before the exercise of a ‘greenshoe’ or over-allotment option”.
SCMP added that the company is planning to secure a total $1.5bn from Tencent, OppenheimerFunds, UK-based Lansdowne Partners, US hedge fund Darsana Master Fund LP, and Chinese state-owned China Chengtong Holdings Group.
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Of these investors, the largest offerings are from Oppenheimer which will add $500mn to the pot alongside $400mn from Tencent.
Hong Kong has implemented new policies which allow companies with two-tiered share structures to launch on its stock exchange, the aim being to attract tech companies to the city.
Meituan Dianping is second to Xiaomi as the latest firm with a dual-class share structure to file for Hong Kong listing.
Xiaomi’s own IPO launched in July and was deemed to be disappointing by Reuters, valuing the company at almost half industry analysts’ estimation of $100bn.
Meituan Dianping declined when asked for comment by Reuters.
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