Meituan-Dianping, an online food delivery-to-ticketing services platform, is seeking a listing hearing and approval next week for its planned Hong Kong initial public offering, IFR reports, citing sources familiar with the matter.
The Chinese company, which is expected to raise at least US$4 billion in the IPO, plans start pre-marketing the deal in the week of August 27 if it gets the green light from stock market authorities, according to the report.
Meituan-Dianping, which counts Chinese social media and gaming giant Tencent (00700.HK) among its backers, filed a listing application in June.
Valued at about US$30 billion in a fundraising round, Meituan will be another sizable IPO in Hong Kong this year after earlier deals of smartphone maker Xiaomi and telecoms infrastructure operator China Tower.
Meituan is also the latest entity with a dual-class share structure to file for a Hong Kong listing, under the city’s new rules designed to attract tech companies.
According to a filing, Tencent holds 20.1 percent stake in Meituan and is its largest shareholder, followed by Sequoia Capital with 11.4 percent.
Founder Wang Xing is also said to own 11.4 percent of the company through 573 million Class A shares, which carry voting rights of about 48.4 percent.
Other backers include venture capital firm DST Global, Singapore sovereign wealth fund GIC and state-owned investment company Temasek Holdings, as well as the Canada Pension Plan Investment Board.
Meituan Dianping posted an 18 billion yuan (US$2.9 billion) loss in 2017, steeper than in the previous two years. Its unaudited adjusted net loss was 2.9 billion yuan.
Meituan, Alibaba-backed food delivery services provider Ele.Me, and Baidu Waimai, which Ele.me acquired last year, are intensely competing for China’s booming online-to-offline (O2O) market, where mobile apps link customers with physical businesses and shops to provide local services like food delivery.
To counter Meituan, Alibaba plans to merge its food delivery units, including Ele.me and lifestyle services firm Kuobei, and raise funds for the combined entity, Reuters reported last week.
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