A Chinese language app that does nearly all the things has discovered robust demand for its shares, bucking the development of latest tech IPOs.
Meituan Dianping raised $four.2 billion from buyers after pricing the newly issued shares close to the highest of its goal vary, an individual aware of the IPO informed CNN on Thursday.
Chinese language smartphone maker Xiaomi and electric-car firm Nio ( priced their latest IPOs on the backside of the vary at a time when buyers have been dumping Chinese language tech shares. )
Meituan’s success suggests there’s nonetheless wholesome curiosity in shopping for into China’s fast-developing web economic system. The corporate’s app affords a one-stop store for companies the place individuals could make lunch reservations, purchase film tickets, e-book holidays or hail automobile rides.
The IPO value of 69 Hong Kong ($eight.79) per share values Meituan at about $53 billion, which is decrease than the $60 billion the corporate was reportedly searching for earlier this 12 months. But it surely’s a giant improve on the $30 billion valuation the startup acquired when it raised funds privately in October 2017.
The corporate didn’t reply to a request for remark.
‘Amazon of companies’
Meituan likes to name itself the “Amazon of companies.” The Beijing startup was shaped in 2015 by the merger of two smaller firms — Meituan and Dianping — that had been considered as China’s equivalents of Groupon ( and )Yelp (. )
The corporate plans to make use of the money from the IPO to improve its know-how, develop new services, and make acquisitions and investments. Meituan made headlines earlier this 12 months by shopping for Chinese language bike-sharing firm Mobike in a deal reportedly price round $three billion.
Meituan has some big-name buyers, together with Google ( and )Tencent (. But it surely’s competing with a few of China’s tech heavyweights like )Alibaba ( and ride-hailing agency Didi Chuxing. )
Its shares begin buying and selling on September 20 in Hong Kong, the place the benchmark index sank into bear market territory this week, weighed down by considerations about China’s economic system and the commerce battle with the USA.
Xiaomi’s shares, which started buying and selling in Hong Kong in early July, at the moment are buying and selling under their IPO value.
Nio, which went public in New York on Wednesday, had a roller-coaster debut. Its shares plunged 15% throughout morning buying and selling earlier than recovering to shut up greater than 5%.
“Our timing was not wonderful,” Chief Monetary Officer Louis Hsieh informed CNN.
CNNMoney (Hong Kong) First revealed September 13, 2018: eight:00 AM ET