Chinese language tech firm Meituan Dianping made a sturdy inventory market debut Thursday after elevating billions of from traders.
Shares in Meituan, whose app is utilized by greater than 300 million individuals, jumped as a lot as 7% in morning buying and selling in Hong Kong, giving it a market worth of greater than $50 billion.
Its robust begin contrasts with the weak debut by the earlier massive Chinese language tech IPO within the metropolis. In July, smartphone maker Xiaomi’s shares fell on their first day and are buying and selling beneath their IPO value greater than two months later.
Meituan’s app affords a one-stop store for companies the place individuals could make lunch reservations, purchase film tickets, e book holidays or hail automotive rides. The corporate raised $four.2 billion from its IPO, pricing its shares close to the highest of its goal vary.
A number of current Chinese language tech listings in the USA have made unstable begins.
Electrical-car firm Nio (, which went public in New York final week, yo-yoed on its first day of buying and selling after which soared 76% the following. It is now buying and selling 35% above its IPO value. )
Information aggregator Qutoutiao’s ( share value greater than doubled on its Nasdaq debut on Friday, however then plunged 35% on the second day. On-line purchasing platform )Pinduoduo ( has additionally had a collection of double-digit positive factors and losses because it listed in July. )
All three corporations at the moment are buying and selling nicely above their IPO costs, shaking off issues concerning the commerce battle and China’s slowing financial system which have weighed on Chinese language tech shares lately.
The ‘Amazon of companies’
Meituan, which likes to name itself the “Amazon of companies,” is benefiting from Chinese language customers’ enthusiasm for doing as a lot as doable by their telephones.
The Beijing-based startup was shaped in 2015 by the merger of two smaller corporations — Meituan and Dianping — that have been seen 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 products, 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 traders, together with Google ( and )Tencent (. However it’s competing with a few of China’s tech heavyweights like )Alibaba ( and ride-hailing agency Didi Chuxing. )
CNNMoney (Hong Kong) First revealed September 20, 2018: 12:17 AM ET